Objections to free trade

Question

Quizplus · Accepted Answer

Objections to free trade typically arise when certain groups within a nation, such as domestic producers, workers, or industries, are harmed by increased competition from foreign imports. It is not accurate to say that trade harms everyone, as many individuals and groups benefit from access to foreign markets and goods. Similarly, it is not true that objections arise simply because importers and exporters may be the same people, as this does not necessarily imply any harm to domestic interests. Arguments against free trade can be consistent with economic rationality, particularly if they are based on concerns about externalities or the impact of trade on income distribution. Finally, while some people may have preferences for domestic goods, this is not the primary reason that objections to free trade arise.

Objections to Free Trade