Question

Why do economists oppose policies that restrict trade among nations?

250 words.
No Plagiarism please.

Answer 1

Economists generally prefer free trade policies and oppose international trade restrictions. There are mainly two reasons behind this:-Open markets or free trade agreements / policies provide the domestic producers with an additional market. Therefore, if a manufacturer thinks that the goods he makes are of good quality and would be able to compete with foreign products then he definitely has an advantage when it comes to free trade policy. Such a manufacturer seeks potential foreign market buyers and attempts to increase its hegemony on the international goods market. Which definitely increases domestic gross domestic product(GDP).

Second, an open economy often calls for foreign producers to sell their produce at competitive prices in the domestic market. This results in a greater choice with the domestic consumers open. So, if there was only one brand that manufactured soap in the country earlier, customers can have a bigger option when international soap companies enter domestic market. It means two things-First, there are limited chances of establishing a monopoly because foreign competitors will drive down the market's high prices due to low competition. Additionally, it contributes to a higher level of customer satisfaction as they can seek out foreign products that may be of better quality.

Economists are opposed to policies because they know the long-term effects there. If trade is limited, there will be no overall development in that region. Economists realized that trade between nations is growing' work specialization.' Through through the comparative advantage, specialisation makes them better off. The nations ' trade amoung helps to improve human lives. Trade makes goods and services more affordable. It also increases product quality, countries ' productivity, etc. Trade widens the size of the economy of the world. Global GDP is on the rise. All of these factors play a major role in opposing the kind of policies that restrict nations with trade amounts.