We can see by looking at a single firm that makes waders in Montana that the Trans-Pacific Partnership combines Adam Smith with David Ricardo.
The consumer benefits from free trade with cheaper goods that most help low income households, more variety, and a GDP rise that boosts living standards.
With the TPP ready for the U.S. Congress’s debate on the free trade deal, we can remember NAFTA, comparative advantage and the fruits of free trade.
The free trade pact that Congress is debating, the Trans-Pacific Partnership, has an ISDS (Investor-State Dispute Settlement) clause that’s controversial.
Displaying a shift in comparative advantage, some Chinese textile manufacturers are locating their factories the the U.S. rather than China.
Looking at tires, fashion and NAFTA, we can see the lost jobs opposition to free trade and the pro free trade response.
While opponents of the TPP free trade deal cite currency manipulation, cheaper exports from countries with cheaper currencies save money for U.S. buyers.