Question

Explain why economists generally argue that trade creates wealth. Your answer to this question should utilize material we’ve covered in class and should reflect what economists argue. Whether one agrees with the view held by economists is immaterial to this question: explain the economic argument.

600 words or less

Answer 1

Explain why economists generally argue that trade creates wealth. Your answer to this question should utilize material we’ve covered in class and should reflect what economists argue. Whether one agrees with the view held by economists is immaterial to this question: explain the economic argument.

Answer

According to the Smith in the wealth of nation paper in 1776 who was moral philosopher by trade , written to describe the Industrialized capitalist system which was on upending the merantilist system.Mercantilism which is a belief in the benefit of profitable trading held that the wealth of nation was fixed and it is finite, the only means to progress and grow is to collect gtold and tariff product from foereing countries.According to this theory of wealth of a nation , the nation have to sell their goods and service to other countries and buying nothing in return.And most predictly ,countries those importing will fell into rounds of retaliatory tariffs that chocked off the internation trade system.Robinson Crusoe in a simpele economy of island says that the development is limited to manual labor. There is rarely food and water not enough to sustain , let alone the blackberrys and bed But it is possible to escpae this state of affair going on with the help of trade this was stated in THE ANATOMY OF STATE by Murray Rothbard.It was also said that the only natural course for the human for hs/her survival is to attain the wealth and progress .This happen by using mind and energy resulting in production and then the exchange of these product with other things creating wealth.This creation is his own property which is wealth .

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