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This article is like the tail wagging the dog. Krugman made a name for himself challenging the very assumption that free trade always leads to mutually benefic
by jimmybot 17y ago
This article is like the tail wagging the dog.
Krugman made a name for himself challenging the very assumption that free trade always leads to mutually beneficial outcomes. If you want to take him on with regard to trade theory, you can't simply respond with the original orthodoxy that protectionism is bad and free trade is good. You'd have to address his specific arguments about economies of scale and the possibility of being "locked-into" a bad trade situation (at a local maximum).
There's a little bit about it here: http://en.wikipedia.org/wiki/Paul_Krugman#New_trade_theory http://en.wikipedia.org/wiki/Paul_Krugman#New_trade_theory