Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 3 - Part I - Interdependence and the Gains from Trade - Questions for Review - Page 59: 6

Answer

Economists oppose any policies which restrict trade between nations because they are economically inefficient. Conversely, economists believe that globalization is far more efficient and encourage free trade policies.

Work Step by Step

Economists believe that globalization is efficient because it allows countries to exploit their comparative advantages — it allows countries to specialize in what they are best at producing and trade with other countries for what they are less efficient at producing.
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