I don't mean to insult anyone, but it appears to me that some of the posters here do not understand macro economics 101.
The benefit of free trade is based on the notion of comparative advantages.
For example, let's look at two countries. In country A, it costs $100 to make a computer and $5 to make a shirt. In country B, it costs $150 to make a computer, while it costs only $1 to make a shirt. Let's say that the consumers both countries have $200 to spend total.
That means under autarky (no free trade), country A can buy 2 computers or 1 computer and 20 shirts or 40 shirts only. Country B can buy 1 computer and 50 shirts or 200 shirts.
Now there is free trade. Now, both countries can buy 2 computers (same as before for A, improvement of 1 for B), 1 computer and 100 shirts (improvement of 80 shirts for A, 50 for B) or 200 shirts (improvement of 160 shirts for A, same as before for B).
So, as can be seen, free trade allows countries with natural advantages to specialize and become more efficient manufacturers. For example, Indonesia can make a shirt for $5 while the same shirt may cost $25 to make in the US. At the same time, US can make a 737 for $15 million while in Indonesia, it would cost $100 million (if it can even make a jet).
So, what's the lesson for American labor? Americans workers are more expensive, because they are fed better, clothed better, have better homes and are purportedly better educated and more technology trained than, say, illiterate Indonesian workers. If that's the case, instead of insisting on competing for $5 shirts, the better educated workers ought to make aircraft or some such thing that takes advantage of their superior education and training.
It would be foolish to insist on making a shirt for $25 that someone else can make $5 and then cry foul when the employer moves to the place where it can be made for $5.
Skorzeny
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For to win one hundred victories in one hundred battles is not the acme of skill. To subdue the enemy without fighting is the supreme excellence. Sun Tzu
[This message has been edited by Skorzeny (edited December 06, 1999).]