The Choice A Fable of Free Trade and Protection

by Roberts, Russell

• ISBN13: 9780131433540
• ISBN10: 0131433547
• Edition: 3rd
• Format: Paperback
• Copyright: 2006-09-28
• Publisher: Pearson

Summary

Written as a novel, the book makes the complex concepts, issues and terminology of international trade understandable for students. Professors complain that their students cannot grasp the nature of how some economic tools are used or how they work in life. This novel bridges the gap of concepts with applications by use of a fictional story. David Ricardo comes to life to discuss international trade theory and policy with Ed Johnson, a fictional American television manufacturer seeking trade protection from television manufacturers. Their dialogue is a sophisticated, rigorous discussion of virtually every major issue in trade theory and policy. To illustrate the positive and normative effects of international trade and trade policy, Ricardo takes the reader and Ed Johnson into the future to see an America of free trade and an America of complete self-sufficiency. The fictional element brings these topics to life so that students gain the intuition and understanding of how trade changes the lives of people and the industries they work in. The fundamental intuition of how international markets function including general equilibrium effects and policy analysis is provided.

Table of Contents

Minutes of the Heavenly Court: Soul of David Ricardo	1	(2)
The Challenge of Foreign Competition	3	(5)
The Roundabout Way to Wealth	8	(7)
Is Trade Good for America?	15	(10)
Are Manufacturing Jobs Better Than Service Jobs?	25	(6)
Is Outsourcing a Threat to American Prosperity?	31	(6)
Do Tariffs Protect American Jobs?	37	(12)
Tariffs versus Quotas	49	(7)
Road Trip	56	(4)
The Case for Protection	60	(10)
Do Trade Deficits Hurt America?	70	(9)
Fair Trade versus Free Trade	79	(11)
Is Globalization Good for the Poor?	90	(10)
Self-Sufficiency Is the Road to Poverty	100	(9)
The Choice	109	(6)
A Final Word from David Ricardo	115	(2)
Explanations, Sources, and Additional Reading	117	(8)
About the Author	125	(2)
Index	127