The theory of comparative advantage is a powerful argument for protectionism.

Question

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The theory of comparative advantage actually argues against protectionism and emphasizes the benefits of free trade between countries. It argues that each country should specialize in producing goods or services that they are relatively better at producing, and then trade with other countries to acquire other goods that they are relatively less efficient at producing. This leads to increased efficiency, lower prices, and greater economic growth. Protectionism, on the other hand, involves erecting barriers to trade, such as tariffs and quotas, which can lead to higher prices, reduced competition, and less innovation.

The Theory of Comparative Advantage Is a Powerful Argument for Protectionism