Political Science 2211E Chapter Notes - Chapter Trebilcock&Howse: Market Failure, Multilateralism, General Agreement On Tariffs And Trade
30 Jan 2018
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Document Summary
Natural law philosophers of the 17th and 18th centuries: sought to resurrect the doctrine of universal economy, justifying a largely unrestrained freedom to trade on the law of nations. Argued for close government regulation of international trade for two reasons: to maintain a fair balance of trade, to promote the manufacturing of raw materials at home, rather than importing them. The origins of the economic case for free trade. The first argument for restricting foreign trade reflected a concern that international trade may give rise to an inadequate supply of circulating monetary gold as a result of the balance of payment deficits. Formed the basis for conventional international trade theory. In its most rudimentary form, international trade theory seeks to demonstrate that free international trade dramatically broadens the contract opportunity set available to private economic actors. Hence the mutual gains realizable from exchange as parties are able to reap.
