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Is more trade always beneficial for countries?
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Selected claim, supporting its parent
Freer trade lowers the costs of production of goods, allowing producers to supply the same quantity of a good at a
lower price
for consumers.
Pros
Cons
Pro claim 1, children below
With more trade, countries can largely stop producing goods that are inefficient to produce and import them instead, allowing them to specialize more and reduce prices.
Pro claim 2, children below
If some companies rely on resources that they have to import, a reduction in trade barriers will lower the cost of those imports, making it cheaper for them to produce their goods.
Pro claim 3
Greater competition means that firms have an incentive to lower their prices where possible, so as to amass a greater amount of demand over competitors.
Con claim 1, children below
The removal of tariffs is often not enough to outweigh the costs imposed by
non-tariff barriers
, keeping prices higher.