December 2018 – Debunking Trade Myths

~~~Debunking trade myths For at least the past 20 years, policy makers, politicians, pundits, and voters in mature markets have worried that their countries are losing groundÑabove all, in manufacturingÑto emerging economies. It’s important to ground the debate on the impact of trade in the truth. A 2012 report from the McKinsey Global Institute (MGI) examined conventional wisdom surrounding globalization: for example, mature economies are losing out to emerging ones in trade and therefore face rising trade deficits, manufactured goods are mainly responsible for them, and trade is the principal reason for the loss of manufacturing jobs in developed economies. False, false, false. See through these widespread misconceptions about how economies create and destroy manufacturing and service jobs. Read “Trading myths: Addressing misconceptions about trade, jobs, and competitiveness”