Question

listen to the podcast and write in one page the key takeaways from the podcast.

The Trade-Offs on Tariffs and International Trade, with Professor Douglas Irwin

Answer 1

Professor Douglas was a French professor of economics.As we are buying from and selling to others international trade is a two way street.Specialisation in trade is important .Everyone is specialised in their interesting thing.By engaging in trade we can share in minifience.Greater output leads to increase in productivity.To depend on imports only is not fair idea with exception on free trade.People should be defended against foreign threats.We can say that trade is very important to the economy.sum of worlds exports and imports divided by GDP gives world trade.Tariffs have been imposed by countries.complete self sufficiency is Autarky that is being less engaged to trade like Cuba,North Korea.After the world war there is rise in international integration and to reduce trade barriers countries are cooperating among themselves.The big champion of opening up world markets was President Reagan.So many countries like US,Western Europe had increased industrialization.Most people concentrate on agriculture in 1950.Foreign investment enters when rural side is moved to manufacturing side.In 2009 there is decline in global economic integration.The suspicion between US and China was lead due to impact of coronavirus.The world moved to less economic integration.Now the technology that we need to concentrate is specialization.If industries are grown then new jobs are formed.If you are staying in urban area relocation or transition of job is easily possible.But in a rural area without moving there is no job.From cheap imports of various consumer goods consumers are benefited.For the improvement of economy creating jobs is important.To produce final goods we have to access cheap inputs and make them efficient in markets.He explained about national security argument and protection of industries on grounds of national security.After world war 2 international instituitions are setup to trade peacefully .Us trade representative namely Robert Lighthizer and president Trump has worked with steel industries.In 1960 the steel industry became powerful.So there will be gain in integration of economy through trade.Finally we have to adjust to changes that are occurring and try to need to think of strategy for improvement of economy.