ethics of trade restrictions report

Ethical Consideration of Trade Restrictions

International trade is a key component in the global economy today . It is further burgeoning through the rise of organizations like the WTO and agreements such as NAFTA which open up free trade , allowing goods to move freely and thereby aiding consumers in various countries in terms of prices and quality . It also spawns healthy competition in the local industries . However , when things in the economy begin to go awry , the first thing that many policy makers pursue is to enact trade restrictions . This can lead to

a breakdown in competition and can lead to adverse effects in the local and international market

In theory every country has a comparative advantage in the production of some products . This means that the labor and capital resources available in the reason are more productive when focused towards a particular industry and thus are able to be produce that product better as a result (Robert 1999 . In the case of the textile industry , Pakistan enjoys a comparative advantage as it has many cotton fields , providing it direct access to the raw material for the industry . It further has been operating in that industry for a long time which has spawned a lot of trained workforce relating to that industry in the country Therefore , law of comparative advantage dictates that it should produce textile materials . Similarly , the US industry has been producing software products in the Silicon Valley for a long time . So , with respect to these two countries...