xBookUtils.terms['fn_7_1'] = "Louis Uchitelle, “Why Hasn’t a Weak Dollar Slowed Imports?” New York Times, April 8, 2005, online edition.";
xBookUtils.terms['fn_7_2'] = "Both “foreign outsourcing” and “offshoring” have been coined recently to describe this new type of international trade. The earliest known use of the word “outsourcing” is a quotation from an American auto executive in the Journal of the Royal Society of Arts, 1979, who said, “We are so short of professional engineers in the motor industry that we are having to outsource design work to Germany” (William Safire, “On Language,” New York Times Magazine, March 21, 2004, p. 30).";
xBookUtils.terms['fn_7_3'] = "There is also the concept of domestic outsourcing, which occurs when a company decides to shift some of its production activities from one location to another within the same country. In this text, outsourcing always means foreign outsourcing.";
xBookUtils.terms['fn_7_4'] = "This term is drawn from Paul Krugman, 1995, “Growing World Trade: Causes and Consequences,” Brookings Papers on Economic Activity, 1.";
xBookUtils.terms['fn_7_5'] = "Martin Kenney and Richard Florida, 1994, “Japanese Maquiladoras: Production Organization and Global Commodity Chains,” World Development, 22(1), 27–44.";
xBookUtils.terms['fn_7_6'] = "The Heckscher-Ohlin model tells us that the factor prices in the two countries will move toward equality when they open trade. So the wage relative to the capital rental will move in different directions in the two countries due to the opening of trade, not in the same direction.";
xBookUtils.terms['fn_7_7'] = "This distinction is far from perfect, however. Nonproduction workers include clerical and custodial staff, for example, who may be less skilled than some production workers.";
xBookUtils.terms['fn_7_8'] = "To illustrate the distinction between parts A and B, consider the following example. If nonproduction workers earn $25 per hour and 5 are hired, and production workers earn $10 per hour and 20 are hired, then the total wage payments are $25 · 5 + $10 · 20 = $325, and the relative wage of nonproduction labor is $25/$10 = 2.5. In contrast, the share of total wage payments going to nonproduction workers is then $125/$325 = 38%, which equals the actual, average share of wages going to nonproduction workers in U.S. manufacturing from 1979 to 1990.";
xBookUtils.terms['fn_7_9'] = "Gerardo Esquivel and José Antonio Rodríguez-López, 2003, “Technology, Trade, and Wage Inequality in Mexico Before and After NAFTA,” Journal of Development Economics, 72, pp. 546–547.";
xBookUtils.terms['fn_7_10'] = "Paul Samuelson, Summer 2004, “Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization,” Journal of Economic Perspectives, 18(3), 135–146.";
xBookUtils.terms['fn_7_11'] = "Recall that the slope of a price line is the relative price of the good on the horizontal axis, which is Components in Figure 7-9.";
xBookUtils.terms['fn_7_12'] = "Notice that the fall in the relative price of components leads to an increase in the amount of components imported but that the amount of R&D exported from Home does not necessarily increase. You are asked to explore this case further in Problem 9 at the end of the chapter.";
xBookUtils.terms['fn_7_13'] = "Merchandise goods include agriculture, mining, and manufacturing. We have excluded petroleum because its world price is determined by conditions such as shortages and wars and behaves quite differently from the prices of other merchandise goods.";
xBookUtils.terms['fn_7_14'] = "These quotations and some material that follows are taken from http://www.factcheck.org/2008/02/oil-and-gas-company-tax-breaks/ (accessed August 23, 2013).";
xBookUtils.terms['fn_7_15'] = "Mary Amiti and Shang-Jin Wei, 2005, “Service Offshoring, Productivity, and Employment: Evidence from the United States,” International Monetary Fund, IMF Working Paper 05/238; and 2006, “Service Offshoring and Productivity: Evidence from the United States,” National Bureau of Economic Research (NBER) Working Paper No. 11926.";
xBookUtils.terms['fn_7_16'] = "Charles Fishman, “The Insourcing Boom,” Atlantic Magazine, December 2012, and Catherine Rampell and Nick Wingfield, “In Shift of Jobs, Apple Will Make Some Macs in U.S.,” New York Times, December 6, 2012.";
xBookUtils.terms['fn_7_17'] = "Andrew Pollack, “Who’s Reading Your X-Ray?” New York Times, November 16, 2003, section 3, pp. 1, 9.";
xBookUtils.terms['fn_7_18'] = "The material in the following paragraphs is drawn from Frank Levy and Ari Goelman, “Offshoring and Radiology,” presented at the Brookings Institute Trade Forum, May 12–13, 2005.";