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Anonymous asked in Social ScienceEconomics · 9 years ago

i have to write an Ap Macro Economics Essay !?

Help how do i start ?

the topic is :According to the theory of comparative advantage,Specialization ,and free trade will benefit all trading parties however some countries prefer protection and dont support free trade.

Discuss the arguments for and against free trade

2 Answers

  • 9 years ago
    Favorite Answer

    Free trade is only optimum in the oversimplified world of Ec 1. There are many cases where it will not "benefit all trading partners".


    "I find it both unethical (& blind) on the part of economists to teach Ricardo's comparative advantage (something that is "optimal" under some set of fixed, nonstochastic assumptions, i.e. price of goods remain fixed) without telling us about the Irish potato famine, the exact result of a model error coming from monoculture, a straight application of the idea. In the mid-19th Century, one and a half million persons died, another million emigrated (mostly to the U.S.). I found so many cases of collapses coming from such optimization (Egypt from cotton, American Indians in the SouthWest, silk in Lebanon)." - Talib Nassim

    Then there is the question of who the trading parties are. Is it the country, the big corporations, or the economic elite? There are many cases where trade has favored a small set of people in one or both of the trading countries, but not the population as a whole.

    The classic legitimate example is trade in natural resource commodities such as oil:

    and there are many cases where trade benefited a few that were bribed but not the rest.

    Then there are the cases where export subsidies hurt the importing countries:

    etc. Just as in ec 1 you learn about all the advantages of a free market, but then have to go back and learn how they never exist in the real world, so too, does the theory of comparative advantage often fails in the real world.

  • ?
    Lv 4
    5 years ago

    Except you will have a burning wish to be trained economics i'd endorse the AP US history path. (Assuming you are planning to attend a college in the U.S.) Most US Universities require 6 hours of historical past as a part of their common schooling requirements regardless of our chosen major. AP US is just about universally accredited if you ranking a four or better. (pupils who take AP World and AP US are capable to entirely experiment out of institution history in the event that they score good.) The Economics course however will frequently now not be authorised as whatever rather than a Gen Ed optional whether it is authorized at all. (this is situated on you being a science main) that is most often decided by using the main you pick. As your undergrad will probably be a bio/chem double principal in guidance for med tuition your Gen Ed electives will probably have to be geared in the direction of these fields. (sincerely AP Econ is not going to offer you credit score that you should use.) The first-class recommendation that i will be able to present (and that I supply to all of my pupils) is that you simply must go to websites of the colleges that you're considering and take a seem at the application of reports for you desired undergrad major. Print it out, take it to the AP lecturers or councilor to your school and ask them notably how one can apply the credits earned by means of every point of view category.

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