In 1993 the negotiations over the North American Free Trade Agreement and the General Agreement on Tariffs and Trade were frequently characterized by comments such as, "Free trade with low-wage countries will cause the wages of U.S. workers to fall." Identify the errors in statements such as this

One error is that higher wages do not mean higher per-unit labor costs. The costs of producing a good depend on both labor costs and labor productivity, an area where the United States frequently has a tremendous advantage. A second error stems from the difference between absolute and comparative advantage. High productivity will not allow the United States to produce everything more cheaply, and neither will low wages allow other countries to produce everything more cheaply. Beneficial trade will be based on comparative advantage, not wage rates.