16 votes
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Have there been instances where economists have advocated a trade embargo?

Free trade is, on the whole, one of the few otherwise controversial policy topics on which economists have near-perfect consensus. Historically, this consensus has long been strong in the English ...
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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 ...
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  • 3,730
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 ...
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  • 961
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 ...
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  • 41.6k
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 ...
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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 ...
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  • 16.6k
5 votes
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Economic consequences of a lingua franca

These two papers seem relevant. The large Indian wage premium for English language fluency suggests that there would be significant returns at the margin to providing services through trade instead of ...
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  • 15.9k
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 ...
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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 ...
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4 votes

Economic consequences of a lingua franca

Within Currency Areas This is not going to be exactly what you're asking for, which also goes into the realms of trade, but: The use of common language is extremely important. Many Economists ...
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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 ...
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  • 961
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 ...
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  • 2,155
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 ...
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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 ...
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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 ...
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  • 992
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 ...
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3 votes
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What are some real-world examples of the different types of trading blocs?

There are actually five different types of trading blocs: preferential trading areas, free trade areas, customs unions, common markets and economic (and monetary) unions [1]. A preferential trade ...
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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 ...
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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 ...
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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 ...
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  • 3,730
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 ...
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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.
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  • 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 ...
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  • 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 ...
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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 ...
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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 ...
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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 ...
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  • 636
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 ...
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