When it comes to international
When it comes to international trade and governmentintervention, which is a better policy for a country to adopt toenrich itself: free trade or protectionism?
-Please no plagiarizing and cite sources if needed.
Answer:
In my view, free trade is a betterpolicy for a country to adopt to enrich itself.
Following are the reasons why freetrade is a better policy for a country to adopt to enrichitself:-
( I ) Theory of comparativeadvantage shows that trade results in higher total output of goodsproduced in two countries that are trading with each other even ifa country has no comparative advantage in any of the tradedgoods.
( II ) Trade provides higher numberof choices of goods to choose from at different market prices whichleads to higher utility to the people in the trading nations.
( III ) Free trade provides nationsopportunity to increase their income by exporting goods which theyare more efficient at producing, and importing those goods whichthey are not very efficient at producing.
( IV ) And the most important reasonis the evidence of trading nations such as China, Germany, etc.,that have traded to their prosperity whereas countries such asNorth Korea which chose protectionism have remained stagnant andpoor.
Therefore, we can say that counrtiesshould choose trade over protectionism to enrich themselves.
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