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comparative advantage on the production of a good

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Evaluate the following statements:
a) The extensive application of protective tariffs destroys the ability of the international market system to allocate resources efficiently.
b) Foreign firms that "dump" their products onto the U.S. market are in effect providing bargains to the country's citizens.

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A comparative advantage on the production of a good is emphasized.

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a. If a country has a comparative advantage on the production of a good than another, there are gains from trade from specialization. This is efficient because both countries would have the total capacity to produce more goods and it is beneficial because each country can end up consuming more of each good. Tariffs prevent this from happenning which, in extreme cases, can ...

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