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You know that comparative advantage helps explain trade, but when higher production cost from specialization eliminates such advantage, how can you then have trade?
Some people support tariff for its triple benefit: it generates government revenue, eliminates trade deficit and raises social welfare. After all, it taxes only foreigners, why not? But why are countries with high tariff generally poorer? Answer: international trade is not a bargaining issue, tariff is not a static one.
This book tries to unlock this disadvantageous, size-uncertain and reaction-dynamic trade door.
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