International Trade

Walter Williams defends international trade.

So let’s be honest with ourselves. Why do we choose to import cocoa, coffee and spices rather than produce them ourselves? The answer is that it is cheaper to do so. That means we enjoy a higher standard of living than if we tried to produce them ourselves. If we can enjoy, say, coffee, at a cheaper price than producing it ourselves, we have more money left over to buy other goods. That principle not only applies to cocoa, coffee and spices. It’s a general principle: If a good can be purchased more cheaply abroad, we enjoy a higher standard of living by trading than we would by producing it ourselves.

The USA is a bit different to us, in that they possibly could cut off international trade without completely destroying their economy – i.e. they have a big enough and diverse enough country to supply most of their needs.

NZ has to trade internationally.  Our economy depends on exporting cheese and lamb as well as tourism.

So I always find it curious when the loony left has a go at international trade. Kind of like those who would use blogs & computers to attack capitalism.