To prevent damaging and other unfair trade practices To improve a country s terms of trade by exploiting its market power To protect declining industries.
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 damaging 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.
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