consumers of a product (consumers may include either households or other firms) to pay higher prices to

benefit domestic producers of that product. In addition, when a country enacts protectionism, it loses the

economic gains it would have been able to achieve through a combination of comparative advantage,

specialized learning, and economies of scale, concepts that we discuss in International Trade.

20.2 International Trade and Its Effects on Jobs, Wages, and Working
Conditions

LEARNING OBJECTIVES

By the end of this section, you will be able to:

• Discuss how international trade influences the job market

• Analyze the opportunity cost of protectionism

• Explain how international trade impacts wages, labor standards, and working conditions

In theory at least, imports might injure workers in several different ways: fewer jobs, lower wages, or poor
working conditions. Let’s consider these in turn.

Fewer Jobs?
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