Trade and Strategic Industries

… a core concept in Economic Analysis and Atlas102

Click for MRU video, Minutes 0.30 to 5:34

Click for MRU video, Minutes 8:38 to 13:55

Concept description

Alex Tabarrok (reference below, video on right, minutes 8:38 to 13:55) analyzes three arguments made to protect certain industries from freer trade:

  1. Industries crucial to national security, such as vaccine production.
  2. Industries that create spillovers, such as has been argued in its day
  3. Industries where the country holds a sufficient share of world supply to behave like a monopolist and extract larger share of the gains from trade

In each case, Tabarrok argues that, while there are good arguments to be made in theory, they usually do not hold up in practice because too many industries try to make these arguments.

KeyIndustries

StrategicTradeTradeTaleaway

Atlas topic, subject, and course

Trade (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Alex Tabarrok, Arguments Against International Trade (14-minute video), Principles of Economics – Microeconomics, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/arguments-against-trade, accessed 5 May 2016.

Page created by: Ian Clark, last modified 5 May 2016.

Image: Alex Tabarrok, minute 00:14 of Arguments Against International Trade (14-minute video), Principles of Economics – Microeconomics, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/arguments-against-trade, accessed 5 May 2016.