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Lay attitudes to trade with low-wage countries

  • Simon Kemp
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    Three studies presented scenarios to lay people to investigate their willingness to restrict imports. Greater restriction was preferred when similar goods were made at home, when the owners of the foreign businesses made very good profits, and, less consistently, when the goods came from a low wage country. Particular reluctance to import from a low-wage country did not vary with whether a home firm was likely to lose business or the level of understanding of comparative advantage, but was related to the profits made by foreign business owners. The results show that lay people views are based on concern for people in other countries as well as in their own.

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    Article provided by Society for Judgment and Decision Making in its journal Judgment and Decision Making.

    Volume (Year): 3 (2008)
    Issue (Month): (April)
    Pages: 335-343

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    Handle: RePEc:jdm:journl:v:3:y:2008:i::p:335-343
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