The owners of a country’s abundant factors gain from trade while the owners of scarce factors...

The owners of a country’s abundant factors gain from trade while the owners of scarce factors lose. Given this theory, U.S. workers can lose from the growth of Chinese industry since the U.S. is capital abundant and labor scarce compared to China. Some say that based on the theory presented. China becoming the world’s manufacturer can be beneficial to the U.S. because U.S. consumers can purchase products more cheaply. Please elaborate on these two arguments. How can you reconcile them?

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Rahul Sunny answered 1 year ago

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