How does international trade policy affect employment? 🔊
International trade policy affects employment by shaping job availability and industry growth through regulations on imports and exports. Trade agreements can create jobs in exporting sectors while potentially leading to job losses in industries facing foreign competition. When trade policies encourage globalization, companies may outsource jobs to countries with lower labor costs, altering domestic employment landscapes. Conversely, protective trade policies may safeguard jobs in certain industries but can lead to trade wars and economic isolation. Thus, balancing trade policies is crucial for safeguarding employment while promoting sustainable economic growth.
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