We're always encouraged to "buy domestic." It is politically popular to support policies that limit import competition and reduce the number of jobs that are outsourced to other countries. According to liberal economic trade theory, however, these policies and the accompanying encouragement to buy domestic-made goods are actually harming our overall welfare in the long run. Explain why liberal theory knows this to be true. Do you agree with the conclusions of liberal theory? If not, why?

Question

Quizplus · Accepted Answer

The Answer of We're always encouraged to "buy domestic." It is politically popular to support policies that limit import competition and reduce the number of jobs that are outsourced to other countries. According to liberal economic trade theory, however, these policies and the accompanying encouragement to buy domestic-made goods are actually harming our overall welfare in the long run. Explain why liberal theory knows this to be true. Do you agree with the conclusions of liberal theory? If not, why?

We're Always Encouraged to "Buy Domestic