In fact, the exact opposite can be true. Trade liberalization can lead to increased domestic employment. It is important to distinguish between the loss of specific jobs and the general level of employment. Trade liberalization can result in the elimination of jobs in specific sectors of the economy, as those who are potentially affected will quickly point out. The second element is the belief that jobs can be saved through government protection.
Governments can save specific jobs, however, the cost of doing so can be substantial.
As the previous example demonstrated, the cost of a job saved may be many times the income it earns. This net loss to the economy may prevent the creation of employment and possibly lead to the elimination of other jobs. The Perception of America's Lost Industrial Competitiveness Recent concerns over America's ability to compete in the international market place and fears of a decline in the country's industrial base have surfaced. Indeed, some leaders have warned of a future of hamburger flipping and sweeping floors in foreign-owned manufacturing plants, and President Clinton's administration has advocated the need for an industrial policy to ensure key U.S. industries remain competitive. As a trip to any shopping mall demonstrates, a vast number of consumer products carry foreign names, such as Mitsubishi, Sony, or Panasonic, or microscopic print notes that it was made in some Asian or Latin American country.