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That's simply rationalizing the use of tariffs as leverage for trade deals, and only makes it desirable to the US. But that was not the question. A poorer count
by ricardobeat 2y ago
That's simply rationalizing the use of tariffs as leverage for trade deals, and only makes it desirable to the US. But that was not the question. A poorer country that exports raw goods does not necessarily have the spending power (or need) to import the same amount of goods - having a trade surplus is desirable for them, and not necessarily bad for the US.
- bitshiftfaced 2y agoOh I see. To you earlier question, I believe neoclassical economics assumed international trade would tend towards balance in the long run due to market forces.