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Questions on Fair Trade
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Read chapter 8 of ECONOMICS MADE EASY, entitled “Globalization” and also this article on Free Trade from The Concise Encyclopedia of Economics (http://www.econlib.org/library/Enc/FreeTrade.html). Then answer the following questions.
- 1.Why should countries engage in international trade rather than remaining self-sufficient and avoiding the unfair competition of low-paid foreign workers?
- 2.If our country can make everything better and cheaper than foreigners, why would we have any reason to be involved in international trade?
- 3.Should we “buy American” instead of outsourcing trade and jobs to foreigners?
- 4.If we do engage in foreign trade, should we limit foreign trade to nations that engage in “fair trade” by giving us access to their domestic markets and reciprocal import tariff reductions that mirror our tariff reductions on our imports from them?
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