Description
We learn in Economics that there are significant gains from trade and that free trade improves the wealth of all nations. In fact, during the past decades, globalization enabled our access to low priced goods and supplies sustaining a persistent state of low inflation and facilitating growth.
The above said, free trade was also subject to scrutiny in the past, and the current supply shocks caused by the pandemic and the war in Ukraine have increased the voice of criticism and dissent.
Please address and elaborate on one of the following two prompts:
- Historically free trade has been occasionally criticized on the ground that, while international trade can make a country as a whole better off, it can also make some agents worse off. Elaborate on this point and provide some examples of agents (firms, individuals, or categories of individuals) who have been or could be negatively impacted by free trade. Would you continue to endorse and encourage free trade? What would you do to help these agents offset the negative impact of free trade? (Please elaborate on the point AND answer constructively to both the above questions in this prompt)
- The supply chain interruption caused by the pandemic and the commodities supply shocks caused by the war in Ukraine have impacted production and global prices profoundly. Concerns are now being raised over reliance on trading partners and the globalization model that we have built in the past three decades. Elaborate on how the pandemic and/or the war in Ukraine have affected the supply of goods and commodities and trade. Would you continue to endorse and encourage globalization and free trade? Would you propose to shift the focus of US trade policy and rebuild its domestic manufacturing? (Please elaborate on the point AND answer constructively to both the above questions in this prompt)
Please make sure that your contribution is original, clear and extensive and that you support your opinions with solid references from your research. I do not grade the merits of your point of view but rather your ability to express it and support it clearly. Please include at least three solid references at the end of your post.
To get the full points you will need to:
- Submit one clear, extensive and well-referenced independent post
- Submit at least one informative post in reply to another student’s post. (which I will give shortly)
