Search results for "Labor mobility"
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Outsourcing under Threat: Estimated Impact of Potential Tariffs on US Imports from Mexico
2017
In this paper, I discuss the effects of certain trade policy measures, mostly import tariffs, presently contemplated by the US government, aimed at enhancing domestic employment in a number of targeted industries. I intend to show that insofar as such measures restrain free trade among NAFTA member-countries, they run counter to a basic rule suggested by conventional theory, stating that, following changes in the tariff structure, resources will shift toward activities that enjoy the highest rate of effective protection. I try to demonstrate that erecting barriers against inside-NAFTA trade, aside from hurting industries that use outsourcing extensively, has little chances to create incenti…