trade, which is intra-industry and carried out with other high-income countries that have labor standards

similar to the United States, but it is, nonetheless, morally and economically important.

In thinking about labor standards in other countries, it is important to draw some distinctions between what is

truly unacceptable and what is painful to think about. Most people, economists included, have little difficulty

with the idea that production by six-year-olds confined in factories, by people who are abused or mistreated, or

by slave labor is morally unacceptable. They would support aggressive efforts to eliminate such

practices—including shutting out imported products made with such labor. Many cases, however, are less

clear-cut. An opinion article in the New York Timesseveral years ago described the case of Ahmed Zia, a

14-year-old boy from Pakistan. He earned $2 per day working in a carpet factory. He dropped out of school in
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