Subject: Economics of Globalization (international trade)
Learning Task – Essay
Despite the accepted benefits of comparative advantage, international trade has been impeded by various governments around the world through the implementation of protectionist policies such as:
• The infant industry argument
• Changing comparative advantage and the inflexibility of workers
• To prevent dumping and other unfair trade practices
• To improve a country’s terms of trade by exploiting its market power
• To protect declining industries.
You are required to provide counter-arguments to the protectionist policies listed above.
Note: Your paper must concentrate on discussing the counter-arguments to the above protection policies, not the protection policies themselves..
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