Date: 2024-04-28 Page is: DBtxt003.php n8-FREE-TRADE
| FREE TRADE |
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Trade ... and the world is better off
Economic theory shows that trade is advantageous to the economy as a whole because the market adjusts to optimize the comparative advantage of all the actors. When the actors are multiple countries, it becomes possible for the world to be better off, but one country to lose while other seems to win. In turn some groups will be better off and some groups will be worse off. In total the world will be better off. | ||
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A global market for professional labor
Dean Baker has observed : It is illegal to practice medicine in the United States unless you complete a US residency program. As a result of such restrictions, our doctors earn on average more than $250,000 a year, twice as much as they get in other wealthy countries. Free trade in doctors could save us roughly $100 billion annually (around 0.6 percent of GDP). There might be comparable gains from free trade in the other highly paid professions. We can design international standards that ensure high quality, but open the door to people trained in other countries. |