Rita Hammer, Chapter 12, Question 5

Overall, Wheelan emphasizes the importance of trade and what it does for an economy. Trade allows poor countries to slowly develop and become richer due to the fact that they "have access to markets in the developed world." I was surprised by the statistics he gave about Africa. After there was a law passed allowing countries in Africa to export goods to the United States with minimal tariffs countries such as Madagascar and Nigeria saw increases in exports from 120-1000 percent. Although people end up losing their jobs due to the competition created by trade, it makes the majority better off. Without trade we throw away a significant amount of potential that will contribute to the growth of not just our economy, but several others. It's controversial on whether trade is good or bad for the sake of people and their jobs; however, if everyone had the view of a protectionist we would be forever turning the specialization clock backward. Wheelan brought up the example of forbidding trade across the Mississippi River. By doing so, the majority of people would end up having to make things that they don't specialize in. "We would be denied superior products and forced to do jobs that we're not particularly good at." We can't possibly make enough goods in our country alone to fulfill the lifestyles we all live. If trade is allowing us to produce what we are good at producing, helping us grow as an economy, and satisfying our demand for goods and services then we shouldn't be doing anything other than trading.