SHAKING UP TRADE THEORY.

Examines how trade economists are struggling to reconcile traditional theories with emerging global realities. Theory of comparative advantage; Question of whether globalization benefits the U.S.; Concerns over the development of a global market for white-collar workers and paycuts for both white-and blue-collar workers; Why the U.S. economy could suffer if cheaper white-collar labor cuts the prices of exports in which the U.S. has a comparative advantage; Implications of the white-collar offshoring trend for the U.S.; Views of economists; Issue of America's overall trade deficit; Outlook. INSET: WHEN WHITE-COLAR JOBS GO ABROAD.