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7 votes

A valid argument against free trade?

I can get to more technical papers, but it's not a big secret what you have quoted. E.g. The Economist quotes MIT professor John Van Reenen: But just because the size of the pie expands [due to ...
against very long user names's user avatar
6 votes
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Why don't prices of USA labor and Mexican labor equalise?

The underlying reason for persistent wage differences is probably that Mexican workers are less productive than American workers. It is sufficient that workers in some tradeable sectors are more ...
Tobias's user avatar
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6 votes

Did free markets cause the industrial revolution?

TL;DR It is fair to say that free markets played a non-trivial role in industrialization and that protectionism in Britain hindered industrialization. However, the Industrial Revolution was caused by ...
1muflon1's user avatar
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6 votes
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Is there a consensus of the effects of free trade on the economic prosperity of developing countries?

Correction of False Claims in Question In economics it is generally agreed that free trade benefits all participants. This is simply not accurate, there is no scholar of international trade that ...
1muflon1's user avatar
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5 votes
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The term "Most Favoured Nation" is misleading to me. Please explain

You seem to have it the wrong way around. The act of country A extending Most Favoured Nation status to country B only affects the import tariffs on country B's products, not those on other ...
Giskard's user avatar
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5 votes
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Do free-trade economies typically offer any protection for domestic markets?

I think the (or at least, a) relevant concept is that of non-tariff barriers to trade. Wikipedia has a nice summary. Let me quote a couple of sections from the article: Non-tariff barriers to ...
Ubiquitous's user avatar
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5 votes

What arguments are there in favor of national food self-sufficiency?

Have there been any economists who have argued in favor of national food self-sufficiency and what are some of their arguments? I am not knowledgeable of literature in that direction, but some of ...
Iñaki Viggers's user avatar
4 votes
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What exactly is the argument for Free Trade?

The theory behind free trade is denominated comparative advantage, and as mike stated, the advantage is that a country, as a whole, benefits from specializing in the fields at which it is best, as it ...
JoaoBotelho's user avatar
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4 votes

Is the Trans Pacific Partnership good or bad for the U.S?

These estimates are almost certainly bs. The TPP would benefit consumers because easier imports may make consumer goods cheaper directly and through more competition on product markets. The TPP would ...
Tobias's user avatar
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4 votes
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Is free trade transitive?

Free trade agreements are not transitive. Each country in a free trade agreement needs to ratify it with a legislative or regulatory body. Otherwise there is no legal basis for it to function and ...
Arthur Tarasov's user avatar
3 votes

Is free trade transitive?

As far as I know, free trade agreements don't automatically extend in a transitive way, but you may want to ask lawyers in international law or look it up. In practice free trade agreements between A ...
Sander Heinsalu's user avatar
3 votes
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Are there countries with free banking?

I'm going to stick my neck out and say that the answer is no, not because I have a specific reference (people tend not to publish papers stating that something doesn't exist) but monetary systems has ...
Mick's user avatar
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3 votes

Understanding Inflation in a video game

You seem to think of a game where objects are obtained at a fixed rate by farming. Fix supply of work for a certain object (bc. Only a few people know where to find things to farm or are high enough ...
Three Diag's user avatar
3 votes

Adam Smith and wage gap?

Yes, Smith addresses these issues in Book 1 Chapter 10 of The Wealth of Nations. Firstly, he notes that where two jobs are in almost every respect equivalent, we should expect them to pay the same ...
Ubiquitous's user avatar
  • 16.9k
3 votes

What arguments are there in favor of national food self-sufficiency?

The main argument for food self-sufficiency---endorsed by Bush in the quote you have---is that being dependant on other countries for food reduces the power a country can hope to wield on an ...
lware's user avatar
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3 votes
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Does free capital mobility invalidate the basic comparative advantage argument for free trade in goods?

Daly actually does explain further what he means by that in footnote 7 of his paper: Capitalists are interested in maximizing absolute profits and therefore seek to minimize absolute costs. If ...
against very long user names's user avatar
3 votes

Is free-trade beneficial if living costs are unequal between countries?

The classic answers is transfers through welfare programs, re-training etc. See this question which is almost a duplicate. I'm re-quoting from there, just with a different emphasis: But just ...
against very long user names's user avatar
3 votes

Why is it a problem if China is exporting "too many clean-energy goods"?

The question assumes it is a problem. But is it really a problem? Even if it is, who’s problem is it? In Janet Yellen’s own words: “Credibility abroad begins with credibility at home.” When the United ...
Ciao Chao's user avatar
2 votes

Do free-trade economies typically offer any protection for domestic markets?

I am not sure what you mean by 'free-trade economies', but yes, most countries/trade areas championing the free market do impose all sorts of tariffs. You can read about it on the World Trade ...
Giskard's user avatar
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2 votes

What are some famous examples of infant industries that failed?

Malaysia's Proton cars (if you want a specific example ), but overall the Malaysia Automobile industry failed. Currently, only the locals drive Malaysian cars.
Bernice's user avatar
  • 21
2 votes

What exactly is the argument for Free Trade?

Free trade in theory allows for a greater division of labor by allowing countries as a whole to specialize rather than a section of each country specializing. In theory this should make every country ...
mike's user avatar
  • 21
2 votes

Have there been any attempts to turn free-trade agreements into Pareto improvements?

The US has a "Trade Adjustment Assistance" for (almost) this exact purpose. Trade Adjustment Assistance (TAA) is a federal program of the United States government to act as a way to reduce the ...
BKay's user avatar
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2 votes
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Ban an import that is exported

In general, no, it can't impose stricter rules on imports than it does on domestic production. Or more accurately, it could, but the countries exporting fur to Norway could challenge this. The guiding ...
410 gone's user avatar
  • 8,168
2 votes

Do free-trade economies typically offer any protection for domestic markets?

The only protection that sincere free trade offers is the increased competivity forced by the "natural selection" against foreign competitors. Protected economies tend to accumulate competitive ...
nafagise's user avatar
2 votes

Abolishing all tariffs without reciprocity

You get cheaper access to inputs. For a large advanced economy that is relatively diversified, it is possible that unilateral tariff reductions across many or all sectors can be good for the economy ...
nathanwww's user avatar
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2 votes
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Which economical consequences could happen to a country if it forbiddes importing cars?

1- Some basic macroeconomic fundamentals I highly doubt a trade imbalance is causing high inflation. The trade deficit is likely happening because of economists call "Twin Deficits". I'll spare you ...
Pedro Cavalcante's user avatar
2 votes

Is Iphone included in tariffs?

As of April 2018, the tariffs are targetted at products in which Chinese companies dominate. They would apply to products made by American companies in China and imported to the US, but the exact ...
Dan's user avatar
  • 1,356
2 votes

What arguments are there in favor of national food self-sufficiency?

I recognize that I cannot prove a negative and claim "no economists want this", but I will caution that there will be few economists with an interest in food independence (being a food autarky) ...
RegressForward's user avatar
2 votes
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Why does the prohibition of importing foreign goods mean that the industry should not exceed what it can maintain?

Smith just states that in autarky country can only enjoy as much goods and services as it itself can produce, which does not hold for trading nations (which can enjoy more goods and services trading ...
1muflon1's user avatar
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