Free Trade System and Capital Flow

550 Words2 Pages
Duy's main argument lies with a few key points, he discusses how the United States has a comparative advantage in service sector jobs, and he falls back on quotes from Alan Binder saying that the United States service sector jobs are extremely vulnerable to off shoring, and that 30 to 40 million service sector jobs are realistically off-shorable. Duy continues on about how US manufacturing jobs are not going to rebound easily, and the price signals to kick off such a rebound are not happening. Duy discusses his frustrations with the current free trade system, and how the ability to manipulate capital capital flows has undermined the free trade communities integrity. Avent's rebuttal to Duys response is that Duy is leaving out the key idea of a countries comparative advantage he writes, "The idea underlying comparative advantage is that a country always has one." he further adds that regardless of a nations ability to perform every other economic activity better than the other, the two will still find it advantageous to produce and trade with one another. Avent added that China is not going to replace everything we do in the US, and the future of jobs is not really something we can accurately forecast due to the nature of technological improvement and its direct ability to completely alter the dynamics of an industry in such a short period of time. Avents final points encompass China and Americas future aspirations; China's economic growth is transitioning to domestic
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