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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1572 |
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He agrees that two countries can complement each other’s needs and both come out as winners if they focus on what they produce best and sell these goods abroad, but only in the case where they didn’t both focus on the same industry as it is the case in airplane building between Europe and the US...
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Yet Krugman doing a bit of math had calculated that even if 1 million workers were moved from these high wage jobs into the service sector which is estimated to pay 30% less, this would only explain 0.3 percent of the decline in U.S. wage rates. What Pretzowitz now says is that service workers (who he maintains don’t compete internationally), are remunerated according what people can pay...
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