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On the purposes of trade policy

Author

Listed:
  • Mises, Ludvig von

    ("Classics of economy" series)

Abstract

Measures taken in the framework of the foreign trade policy (ie, a certain desire to change the local division of labor, formed as a result of interaction between different economic forces), it is impossible to understand, if only a limited analysis of the economic purpose - to make as many as possible of those or other goods at the lowest cost. From an economic point of view, protectionism can not be the justification. All those who tried to prove the opposite, failed. No one could neither shake, much less refute the arguments of supporters of free trade school improvement which we owe to David Ricardo. In the case of unlimited freedom of trade, each country refers to those branches of industry for which there are relatively favorable conditions. Any artificial interference in the relationship between these conditions will eventually lead to a reduction in production and a decline in software product of some kind.

Suggested Citation

  • Mises, Ludvig von, 2006. "On the purposes of trade policy," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 91-107, March.
    • Handle: RePEc:rnp:ecopol:611
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