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The basic benefits of free trade (based on comparative advantage) do not require both parties to engage in it They make a superior dancing video app, so then e
by contrarian1234 3y ago
The basic benefits of free trade (based on comparative advantage) do not require both parties to engage in it
They make a superior dancing video app, so then engineers in silicon valley can go work on something else instead
- TulliusCicero 3y agoThe point is that they get to access the Western market with their dancing video app, but Westerners aren't allowed to access their market with the apps they make. That gives those Chinese companies an unfair advantage in potential market reach.
- contrarian1234 3y agoAnd it turns out that that's irrelevant in terms of net benefit to the citizen of a country https://en.wikipedia.org/wiki/Comparative_advantage https://en.wikipedia.org/wiki/Comparative_advantage Resources are reallocated elsewhere
- zone411 3y agoA simplistic economic model that overlooks hundreds of important factors may provide a basic Econ 101 understanding but it does not reflect how the world truly operates and proves nothing.
- contrarian1234 3y agoSure it's a simple model. But the burden of proof lies with the person claiming that free trade needs to be bilateral. That's not some inherent property of it, or something immediately obvious. A basic look at it past "It's not faaiiiiiir" actually shows quite the opposite