Basic Message Comparative Advantage does not tell us that New Capabilities Abroad are necessarily good for the U.S. We do not have to give up Free Trade; it has many advantages But a Good Free Trade Outcome is not automatic. There is much to be learned and done to obtain it.

Discussion Outline Two Views of Offshoring What the Literature Actually Says The way Trade is and the way Trade Was Is Trade always Good? Yes, but some outcomes are better than others for the U.S. What can contribute to a good U.S. Outcome? Corporations’ Role may conflict with the National Interest

Conflict and Mutual Gains