U.S. firms would sometimes threaten their workers with moving their jobs to low- wage Mexico if they dared ask for higher wages and benefits. Thus caused wage stagnation. All of the above statements are true and correct. The U.S. lost over 800,000 good-paying manufacturing jobs and created a Rust Belt (a depressed area) in states like Pennsylvania, Ohio, Illinois, and Michigan. The old 1993 NAFTA deal was never updated to allow smaller businesses to take advantage of new opportunities created by the Internet. Smaller U.S. businesses were routinely left out of lucrative markets that were often taken over by larger U.S. firms that had more neqotiating leveraqe.

U.S. firms would sometimes threaten their workers with moving their jobs to low- wage Mexico if they dared ask for higher wages and benefits. Thus caused wage stagnation. All of the above statements are true and correct. The U.S. lost over 800,000 good-paying manufacturing jobs and created a Rust Belt (a depressed area) in states like Pennsylvania, Ohio, Illinois, and Michigan. The old 1993 NAFTA deal was never updated to allow smaller businesses to take advantage of new opportunities created by the Internet. Smaller U.S. businesses were routinely left out of lucrative markets that were often taken over by larger U.S. firms that had more neqotiating leveraqe.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter17: International Trade

Section: Chapter Questions

Problem 2.6P

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