their labor decreases and shifts back to the left, so that their wages decline with a rise in international trade.

Conversely, workers in industries that benefit from selling in global markets may find that demand for their

labor shifts out to the right, so that trade raises their wages.

LINK IT UP

View this website (http://openstax.org/l/fairtradecoffee) to read an article on the issues surrounding fair trade

coffee.

One concern is that while globalization may be benefiting high-skilled, high-wage workers in the United States,

it may also impose costs on low-skilled, low-wage workers. After all, high-skilled U.S. workers presumably

benefit from increased sales of sophisticated products like computers, machinery, and pharmaceuticals in

which the United States has a comparative advantage. Meanwhile, low-skilled U.S. workers must now compete

against extremely low-wage workers worldwide for making simpler products like toys and clothing. As a result,
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