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samilee samilee
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Posts: 352
6 years ago
Why is the notion of specialization important when analyzing the benefits of free trade?
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6 years ago
 Critics of free trade worry that imports can have a negative effect on a country because they involve an outflow of capital. Those taking this perspective argue that by substituting locally-made goods for imports allows the country to not only have the goods, but also keep the money. Supporters of free trade disagree. They believe that it is important to consider the role of specialization. If countries specialize in what they do best, and trade for everything else, their resources are more productive and ultimately, the country will be better off. Those taking this view feel that limiting imports only forces a country to make an inefficient use of its resources.
samilee Author
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6 years ago
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