International Trade

Introduction

This section will first show why nations export and import goods, and then examine barriers to trade and various steps that have been taken to lower barriers to trade.

While foreign trade isn't as emotionally loaded as say, taxes and government spending, like most topics in economics it stirs the blood of certain people—those whose livelihoods and lifestyles are most affected by exports and imports. These people have very real concerns, but those concerns are specific to their individual lives. Economists almost universally believe that foreign trade in a free global marketplace will create the greatest good for the greatest number of people.

Let's start with why they would believe this.

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Excerpted from The Complete Idiot's Guide to Economics © 2003 by Tom Gorman. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Alpha Books, a member of Penguin Group (USA) Inc.

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