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Bringing Balance: A more Robust Analysis on the Dark Side of Trade

Fri, January 18, 9:30 to 10:50am, JW Marriott Austin, 305

Abstract

As a public policy and international relations topic within political science, trade theory is often taught in superficial ways. A general case against free trade is typically offered in classrooms and textbooks, but specific limitations and assumptions are often inadequately described. This paper seeks to present a more robust examination on the limitations of free trade. Greater emphasis is placed on how trade can create inequalities and unintended consequences. This includes a better understanding of the impairment of displaced workers. Rationales of those opposed to trade liberalization are discussed as well why the Smoot-Hawley Tariff Act of 1930 may be an invalid case when applied to a more globalized world. Additionally, more scrutiny is presented on the assumptions and limitations of Ricardo’s theory of comparative advantage. Lastly, a simple classroom simulation of Ricardo’s theory is presented to reveal how the gains from free trade might be achieved or invalidated.

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