Global trade imbalances affect how countries adjust to trade shocks. A model was created to study this, considering factors like household decisions and labor market issues. The model shows that trade imbalances change how globalization shocks impact labor markets and unemployment. Empirical studies suggest that the U.S. gains 2.2 percent from globalization shocks, but this would have been higher without a global savings glut. In a balanced-trade world, the gains would have been smaller.