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This! Ricardo's model assumes that every country stays at the same level of productivity. In reality sometimes it makes sense to protect industries a little so
by Ozzie_osman 8y ago
This! Ricardo's model assumes that every country stays at the same level of productivity. In reality sometimes it makes sense to protect industries a little so they can develop. That said, free trade works better 90% of the time (even outside the simplistic in-a-vacuum model).