Should the U.S. Restrict Free Trade?

• “No”

  

  “Free Trade Allows Countries to Exploit Comparative Advantage ”

• No Objections Yet

Free Trade Allows Countries to Exploit Comparative Advantage

National Center for Policy Analysis

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Freer trade — from reduced tariffs, regulations and restrictions — permits an economy to make better use of its resources but does not automatically give a country a new and much higher growth rate. Its main benefit is its effect on the level of output rather than on the long-term rate of growth.

One way that trade contributes to an increase in economic output is through comparative advantage, which creates more value with the same resources. A country has an absolute advantage in producing a good (say rugs) when it can produce it more efficiently than another country, making more in a shorter period of time. Comparative advantage comes into play when that country chooses to let the second country produce rugs less efficiently so it can devote those same resources to producing something else the second country can’t produce, something more beneficial like computers. Then it trades some of the computers for rugs. Now both countries have rugs and computers, whereas before they both were competing to only make rugs. Trade barriers impede this process and make the costs of goods more expensive for both countries.

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"No" NCPA

• Free Trade Allows Countries to Exploit Comparative Advantage
  1
• Free Trade Necessary for Economic Growth
  0
• Trade Balance, Exports Are Price We Pay
  0
• Outsourcing Allows Cost Savings and Everyone Benefits
  0
• Trade Barriers Harm Poor, Not to Mention United States
  0

"No" Institute for Policy Innovation

• We Can’t Afford Not To Trade
  1
• A Civilizing Force
  1
• Free Trade Is Truly Progressive
  1

"No" Diana Furchtgott-Roth

• Free Trade Creates Jobs
  0
• Free Trade Makes American Paychecks Go Farther
  0
• Trade Adjustment Assistance Helps Those Who Lose Jobs
  0

"Yes" Global Exchange Organization

• 'Free' Trade Agreements Have Big Costs
  1
• NAFTA Has Further Consequences
  0
• We Must Learn From the Past
  0

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Restrictions on Free Trade?

• Yes
• No

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