Why does Wheelan argue that international trade is beneficial?
http://en.wikipedia.org/wiki/Charles_Wheelan
To understand why Wheelan argues that international trade is beneficial, we first need to know who Wheelan is. In this case, Wheelan refers to Charles Wheelan, an economist and author.
To find Wheelan's argument regarding this topic, we can start by looking for his writings or books on international trade. One of his renowned books is "Naked Economics: Undressing the Dismal Science," where he explores various economic concepts in a comprehensible manner.
In "Naked Economics," Wheelan presents several reasons why he argues that international trade is beneficial:
1. Comparative Advantage: Wheelan supports the theory of comparative advantage, which states that countries should specialize in producing goods or services in which they have a lower opportunity cost. By focusing on producing what they are relatively efficient at, countries can gain from trading with others who have different comparative advantages. This leads to an overall increase in productivity and efficiency.
2. Efficiency: International trade allows countries to access a broader range of goods and services at competitive prices. When countries can import products they lack the resources or technology to produce efficiently, they benefit from the higher quality and lower prices available in the global market. This leads to increased consumer choices and improved living standards.
3. Economies of Scale: International trade enables economies of scale, which means producing larger quantities at lower costs per unit. By expanding markets beyond domestic boundaries, countries can increase production levels, reduce costs, and achieve greater efficiencies. This ultimately leads to lower prices for consumers and higher profits for producers.
4. Innovation and Technological Progress: Trade encourages competition and technological advancement. When countries are exposed to global markets, they face the pressure of staying competitive, which drives innovation and the development of new technologies. This results in improvements in productivity, leading to economic growth and higher living standards.
5. Peaceful Relations: Wheelan asserts that international trade promotes peaceful relations among nations. By engaging in mutually beneficial trade relationships, countries become less likely to resort to economic sanctions or military conflicts. The interdependence created by trade fosters an environment where cooperation and diplomacy are more likely than hostility.
By examining Wheelan's arguments, we can understand his perspective on the benefits of international trade, which are grounded in economic principles, efficiency gains, technological progress, and fostering peaceful relations among nations.