1. By Lori G. Kletzer Presented by: Shay Ben Ari and Yehuda Moas

2.  The impact of globalization is a source for public debate.  Advantages: overall better and efficient economy.  Disadvantages: Stage one - job loss in the non-service workers, due to import.  Clearly, the benefits of free trade are distributed unevenly in working society.

3.  Federal programs for compensating the job loss are insufficient.  Stage two - outsourcing.  Outsourcing potentially broadening job loss to service workers.

4.  It is hard to know if job loss was caused from trade displacement.  import share - Increases in the “import share” can be related to employment and job loss.  25% top industries with the highest change import share value are also with the highest job loss rate.(1979-1994)

5.  Between 1981 to 1985 the dollar grow strong.  Effects: buying low, selling high.  Unbalanced industries: high import to low export.  Grow in exports creates more job, and lower risk for job loss.

6.  Compared to the OECD countries, in the U.S has poor federal compensating programs.  TAA is a trade policy and is providing some compensating for trade related job loss.  You can find common characteristics of trade displaced workers. These characteristics can help us to improve federal programs.

7.  Outsourcing – keeping the company’s main service in home, all the rest is imported or created elsewhere.  Service exports increase and import increase.  The change in job displacement, even service giving worker are effected.

8.  unclear understanding of the role of services globalization.  The risk of job loss in non-service workers compere to service workers.  In reemployment the advantage of service worker on non- service worker.

9.  The information about the effects of free trade on growing job loss, is accurate enough to see the situation needs to be change.  To help those effected by job loss, the criteria for compensating needs to be change.

10.  Acknowledgement that free trade, have benefits, but not for everyone. Especially for manufacturing workers. On service workers we do not yet know enough.

11. Questions?