Comparative Advantage: Sources of, Challenges to
In the article, “Is Free Trade Passé,” Paul Krugman summarizes and explains research that challenges, and presents alternatives to, the assumptions of classical trade theory based on comparative advantage. In a 4-6 page paper (12-point font, double-spaced) summarize positions that challenge the assumptions of constant returns and perfect competition (keeping in mind that empirical validation of trade theory requires only reasonable approximations to these conditions) and discuss the implications for classical trade optimism (the argument that free trade is always “a good thing”) and for trade policy and practice.
Reading Material and video:
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Article is here: Is Free Trade Passe.pdf
Further Required Readings:
Instructions:
This paper must be wrote in APA at a Masters Level Style. If You quote the article please reference it, if you use something from the readings pdf please reference it with a line number and I will finish that reference for you use like “(Weekly Readings, Line 19)”
2-3 more outside references would be great also
