Critical review of free trade debates

Type :

Term papers

Pages :

5 pages

Format :

.doc

Published date :

08/11/2009

Category :

Economics & finance

Sub category :

Economics

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Summary :

Introduction
Robert E. Maxwell's analysis of the historical evolution
1. Early foreign trade doctrines
Anne Krueger's view
1. Her two questions for the WTO
2. The division of her speech into 8 sections
3. The two principle motives that continue to drive opposition to trade liberalization
4. Evidence showing that free trade was beneficial
5. Why governments promote protectionist policies
Eeakness in Krueger's argument
Conclusion

Abstract

George Grantham, a professor of economics at McGill University, used examples from manorial England to show that the Ricardian concept of comparative advantage through free trade was not applicable during the pre-industrial period. According to the author, the English economy was characterized by wide fluctuations in output and lack of diminishing returns to capital (land) and labor. He stated that technology had not evolved to improve productivity. As a result, the gains from farming, herding, and other "economic enterprise" varied greatly depending upon weather, disease, and other factors. In many instances, people were geographically dispersed, so the concept of "congestion of capital" didn't apply. Additionally, the market for goods wasn't developed because of the lack of clear transportation/trade routes.