1b) I think i&#x27;d say that it is both path-dependent and also the simple lack of variation (as in any evolving system) produces poorer results with respect to long-term innovation and sustainability. If I had to venture a guess as to why this didn&#x27;t happen with the west, i&#x27;d say it&#x27;s because we were first. It was easy for us to transition into new markets because there were no established players already doing it better - making a shitty car is a great business if everyone else is riding horses.<p>2. Ya, that&#x27;s fair. But I think it&#x27;s a pretty huge caveat to &quot;free trade is good&quot; to have to say &quot;free trade is good on the whole, but harms poor, low skilled workers in the absence of concomitant and independent wealth distribution reforms (which are, here at least, politically untenable)&quot;. And it&#x27;s strange to me that Krugman who I think is generally considered leftist wouldn&#x27;t address this seemingly obvious shortcoming.