In this discussion question, you will use the concept of opportunity cost to explain how trade can benefit the economies of both trading partners. Following is some information to provide context and perspective. In April 2009, while the economy was still in recession that began in December 2007, the director of the World Trade Organization urged countries not to implement trade barriers in response to the slowdown in the global economy, arguing that increased protectionism would be counterproductive and stand in the way of economic recovery. His comments are summarized in this blog entry at Real Time Economics, part of the Wall Street Journal: WTO Chief on Trade Barriers (http://blogs.wsj.com/economics/2009/04/25/wto-chief-trade-barriers-will-prolong-crisis/ )
In this discussion question, you will use the concept of opportunity cost to explain how trade can benefit the economies of both trading partners. Following is some information to provide context and perspective. In April 2009, while the economy was still in recession that began in December 2007, the director of the World Trade Organization urged countries not to implement trade barriers in response to the slowdown in the global economy, arguing that increased protectionism would be counterproductive and stand in the way of economic recovery. His comments are summarized in this blog entry at Real Time Economics, part of the Wall Street Journal: WTO Chief on Trade Barriers (http://blogs.wsj.com/economics/2009/04/25/wto-chief-trade-barriers-will-prolong-crisis/ )
