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Analysis of Trade Barriers in underdeveloped countries.

Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as "Unfair" import competition. Is such competition "unfair"?

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The answer to this question is typically a debate between two schools of thought, the "protectionist theory" or the "free trade" enthusiast's theory. Regardless of which school of thought one is persuaded by, the import of low wage workers and goods have arguments of fair and unfair claims from both sides that can be hard to determine which is factual and which is propaganda.

For the union or protectionist, the importation of low wages equals a loss of jobs and a lowering of the pay scale to try and compete at the same rate as the non industrialized import nation (Contract Journal, 2003). Obviously, it would seem that it could be unfair to unionized workers who feel threatened by the apparent competitive advantage that cheap ...

Solution Summary

The answer to this question is typically a debate between two schools of thought, the "protectionist theory" or the "free trade" enthusiast's theory. Regardless of which school of thought one is persuaded by, the import of low wage workers and goods have arguments of fair and unfair claims from both sides that can be hard to determine which is factual and which is propaganda.

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