On January 13, 1998, Stephen Golub, professor of economics at Swarthmore College, led the sixteenth seminar in AEI's series, Understanding Economic Inequality. His presentations sought to dispel fallacious but widespread views concerning the effects of competition from low-wage countries in international trade, including the view that such competition has significantly increased wages inequality in the U.S. The argument that low foreign wages has provided an unfair competitive advantage has been widely believed in the United States for at least 150 years. On

Seal, Melanie. "Canada: Summit Called Sham, Wishy Washy." www.corpwatch.org/news/2001/0101.

Kohut, Andrew. "Americans Hold Varying Views About Benefits of Globalization." seattle-i.nwsource.com/opinion/kohut.

"Powell Promotes Globalization." dailynews.yahoo.com/h/ap/20010427/pl/powell_globalization_1.

Delong, Bradford. "Globalization and Neoliberalism." econ161.berkley.edu/econ_articles/reviews/alexkafka.

o do with the FTAA negotiations. Next, Latin American and Caribbean islands need more help with their debts. These countries cannot afford the new, increased debt levels caused by foreign investment. Sixth, the "FTAA will promote the international capital model of development." This model consists of the rate of interest on foreign loans, the exchange rate, and the rate of growth in export markets. In the FTAA, the U.S. gets most of the benefits from these areas. Another reason the Mr. Cameron opposes the FTAA is that the "U.S. corporations want the right to be treated as a corporate citizen of every other FTAA country." Of the 34 FTAA countries, the U.S. is the only one who would benefit if this were to happen. The eighth reason is that the FTAA will incorporate American protectionist measures. This gives the U.S. the right to retaliate, to take measures of equal commercial effect against any industry it wants. This causes other countries not to try anything new bec!

the question of whether competition from low-wage countries is the cause of the widening income gap in the U.S., many agree that wage inequality reflects greater demand for skilled labor, as evidenced by the growing wage premium earned by college students. There are two possible causes of the increasing demand for more sophisticated skills: international trade and skill-biased technological change. International tra!

nomic block can distort these prices." By buying goods from member countries with a lower price, the importing country might get a less efficient product. The country with the higher price might produce those goods at a better quality, but others will not buy from them because of their price. There is also a dynamic effect of International trade. In this effect, "integration leads to a larger market within the block, allowing countries to take advantage of economies of scale to reduce prices." Integration also allows for specialization by member countries. Rather than having all member countries producing a large variety of goods, they can agree to "allocate production of certain goods to certain member countries." This, again, means they can take advantage of economies of scale. All of this leads to the question of whether economic integration is best type of free trade. Although "conventional free trade gives maximum benefits to the entire world, economic integratio!

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Approximate Word count = 2777
Approximate Pages = 11 (250 words per page double spaced)