Question

Discuss how a layperson's view of trade differs from the view of economists. List and explain at least two examples

Answer 1

A layman has his views very personal and confined at micro level and looks to view the smaller picture in present scenario.

However an economist views larger picture and what ramifications any trade policy can have on the economy is seen alongside how the trade creates future prospects for the nation as whole.

For example, tariffs on Chinese goods by Donald Trump was seen positive by layman as it preserves the jobs and decrease unemployment however an economist saw it negative as it created Trade war and positive for fact that it reduced trade deficit.

Similarly, the Brexit was seen as amazing opportunity by a layman in UK as it helped them preserve their job opportunities, curb inflation and helped eliminate refugees. However economist saw its negative implications on Stock markets and how trade relation could worsen with other EU members.

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