clearly negative. They end up buying a lower quantity of the good and paying a higher price for what they do

buy, compared to the equilibrium price and quantity with trade. The following Clear It Up feature considers

why a country might outsource jobs even for a domestic product.

CLEAR IT UP

Why are Life Savers, an American product, not made in America?
In 1912, Clarence Crane invented Life Savers, the hard candy with the hole in the middle, in Cleveland, Ohio.

Starting in the late 1960s and for 35 years afterward, a plant in Holland, Michigan produced 46 billion Life Savers a

year, in 200 million rolls. However, in 2002, the Kraft Company announced that it would close the Michigan plant

and move Life Saver production across the border to Montreal, Canada.

One reason is that Canadian workers are paid slightly less, especially in healthcare and insurance costs that are not
{"source": "downloads\\business\\economics\\Microeconomics3e.pdf", "upload_timestamp": "2026-02-07T15:37:44.339247", "total_pages": 597, "file_type": ".pdf", "file_size_mb": 26.99, "producer": "Prince 14.2 (www.princexml.com)", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "moddate": "2022-12-07T14:23:05-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "title": "Principles of Microeconomics 3e", "uploaded_via": "batch_uploader", "batch_upload": true, "creator": "PDFMiner", "file_name": "Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00"}