International trade brings with it indirect competition in the labor market across international boundaries. Since World War II, there has been a sequence of broad international trade agreements as well as regional accords such as NAFTA. In addition, the end of the Cold War and the emergence of China and India in world markets have heightened the impact of trade. Domestic labor markets are affected by the indirect competition as well as by international investment flows, particularly direct investment. In the case of the U.S., there is an additional impact of a large and persistent trade deficit in particular sectors, especially manufacturing. This research cluster covers the impact of these global forces on the domestic labor force.
