What is the compensation principle and how does it help us understand the difference between "actual" gains from trade and "potential" gains from trade? How does this help us understand the claims that trade harms the positions of industrial workers in the United States? Based on what we've discussed this week, do you think these claims are valid?

Answer rating: 100% (QA)

The compensation principle is the idea that people who lose from trade should be compensated by thos... View the full answer