4 ms·
For a tariff that hurts one industry but helps another, it's comparative advantage, not just advantage, that is relevant. (Even if country A is better at makin
by jessriedel 9y ago
For a tariff that hurts one industry but helps another, it's comparative advantage, not just advantage, that is relevant. (Even if country A is better at making both product X and product Y than country B, introducing trade between A and B can result in manufacturing of Y migrating to country B.)
https://en.wikipedia.org/wiki/Comparative_advantage https://en.wikipedia.org/wiki/Comparative_advantage
- dragontamer 9y agoThx, its always cool to learn new economic tidbits.