Question

1) (a) Describe one valid argument used in support of barriers to international free trade. (10 marks) (b) Describe one invalid economic-related argument used in support of barriers to international free trade. Explain why the latter one is invalid. (15 marks)

Answer 1

A) Valid argument: National security

Reason: For goods like defense, military equipment which are crucial for the security of the country, it is not an intelligent choice to depend on international trade or foreign countries. This is because during times of war or tension between the countries, trade gets disrupted and the countries are left with no equipment of their own to fight for their safety

B) Invalid argument: Jobs argument

Proponents of international trade argue that opening doors ro international trade leads to domestic workers losing their jobs. This is not true because opening up of trade increases exposure of firms to international markets which they use to their advantage and increase production and employment.

This argument is not true and is thus invalid.