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Why do economists oppose policies that restrict trade among nations?
Wiki User
∙ 12y ago
Economists oppose because besides gaining from trade there are some disadvantages that a nation face....
Free trade implies open access to the economy of any nation and thus the economy of a nation can be influenced by the activities of other nations...
trade helps nation in specialization of producing that goods in which it has comparative advantage i.e which it can produce with lower opportunity cost...
If a nation specialize in only one commodity production neglecting others then it would have to be dependable to other nations for other commodities..thus it may expand the economy of others but not its own...
often international trade becomes beneficial when one can get goods at lower price than its price in own country,but it causes the internal industries as well as economy to break down....
so to expand own economy as well as development a nation should restrict its trades protecting own industries....
Wiki User
∙ 12y ago
Wiki User
∙ 12y agoEconomists may oppose policies that restrict trade because, according to economic theory, overall utility is increased by trade. Both parties are better off if they concentrate their resources on activities for which they have a comparative advantage.
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