Please address the following:
1. What do economists mean by "comparative advantage?
2. Explain the barriers to free trade and the economics impact of trade barriers. Which trade barrier do believe is more effective and why?
3. Make a case for a trade barrier and a case for free trade.
1. The term "comparative advantage" means the ability of a person or nation to manufacture a product or service at a lower opportunity cost than another person or country. For example, companies are trying to outsource operations such as manufacturing, back offices, research and development to low cost nations that offer a "comparative advantage" in terms of the cost and quality of labor, such as India and China.
2. Barriers to free trade include import duties such as customs, anti-dumping duties and other trade restrictions such as restrictions on certain types of imports and exports, restrictions ...
In about 380 words, this solution discusses the concepts of the comparative advantage, barriers to trade and free trade. Examples are used to further strengthen the discussion.