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20.5 • The Tradeoffs of Trade Policy 493

focus not just on the average or on the success stories, but also on those who have not been so fortunate.

Workers in other countries, the environment, and prospects for new industries and materials that might be of

key importance to the national economy are also all legitimate issues.

The common belief among economists is that it is better to embrace the gains from trade, and then deal with

the costs and tradeoffs with other policy tools, than it is to cut off trade to avoid the costs and tradeoffs.

To gain a better intuitive understanding for this argument, consider a hypothetical American company called

Technotron. Technotron invents a new scientific technology that allows the firm to increase the output and

quality of its goods with a smaller number of workers at a lower cost. As a result of this technology, other U.S.
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