ABSTRACT
The secularly rising and record trade deficits that have been registered in the U.S. accounts in recent years and allegations of deindustrialization of the U.S. economy have focused public attention on the international division of labor (IDL) and the role of the U.S. in that division. Few, if any, analysts would be likely to deny the role of international trade and competition in determining the position of the U.S. in the IDL. Therefore, the traditional theory of international trade provides one approach to the determinants of the IDL and the U.S. position within the global allocation of labor.
