Arguments against international trade often include the negative impact on employment in domestic industries facing competition from foreign imports into the domestic market. It is also important to consider the impact on employment in domestic industries that are net exporters to the rest of the world. An analysis by the U.S. Department of Commerce International Trade Administration estimated that U.S. exports supported 11.6 million jobs in 2019.

1. According to the U.S. Census Bureau, in 2019 the United States imported $44.5 billion worth of cotton apparel (clothing). What impact would this have on the quantity supplied of cotton apparel produced in the U.S.? Briefly explain. What impact would this have on the number of jobs in the cotton apparel industry in the U.S.? Briefly explain your reasoning.
2. According to the U.S. Census Bureau data on foreign trade, in 2019 the United States exported $7.9 billion worth of wheat to the rest of the world. What impact would this have on the quantity supplied of wheat produced in the U.S.? Briefly explain. What impact would this have on the number of jobs in the wheat industry in the U.S.? Briefly explain your reasoning.
3. Based on your answer to parts (A) and (B), are there both winners and losers among workers in the U.S. when international trade is allowed to occur? As a result of free trade, do net benefits to society increase enough to allow for the workers that are losing to be fully compensated for losing their jobs? If not, why not? If so, how might we compensate the losers?