Practical dicussion of trade policy is dominated by considerations of income distribution. How does trade policy affect income distribution in a country? Discuss.

Answer 1

Think of low wage countries. Has this affected wages in high wage countries?

I read of one company in a developing country that is paying its workers three times the average wage in that region. How do workers who can't get a job in that factory cope?

Check this article.

http://www.iie.com/publications/pb/pb.cfm?ResearchID=94

Answer 2

so it affects trade income distribution by harming certain groups, like owners of resources that are used intensively in industries that compete with imports, causing conflicts about trade.? It taxes consumers and gives the proceeds to producers... Is this correct.