Chapter 34: Problem 34
If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
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Chapter 34: Problem 34
If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
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In principle, the benefits of international trade to a country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a country, for example, workers who lose their jobs due to foreign imports. In your opinion, does that mean that trade should be inhibited to prevent the losses?
What are main reasons for protecting "infant industries"? Why is it difficult to stop protecting them?
Is international trade likely to have roughly the same effect on the number of jobs in each individual industry?
What is the "race to the bottom" scenario?
If trade barriers hurt the average worker in an economy (due to lower wages), why does government create trade barriers?
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