It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's. What do you think about this argument?
The given statement is true to a greater extent and this is because of the fact that what happens when free trade is possible between the countries is that Mexico is the one which cheap labour as a result of which many companies will move towards Mexico for the production purposes with the available capital bringing from the United States as a result of which the demand for labour in United States decrease as a result of which the wage decreases to the Mexican level which is not desired on the whole and that's the reason why you have to understand that there should be certain restrictions in order to protect the workers from the United States so that they would also be better off
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