Part 9/11:
Government interventions like tariffs, quotas, or taxes hinder the natural flow of trade by reducing the overall gains. Whether domestic sales taxes or foreign tariffs, these actions divert resources from productive uses and often lead to inefficiencies.
The Future of Global Trade: Cooperation Over Protectionism
Given the dynamic nature of the global economy, trying to revert to old manufacturing paradigms through protectionist measures is unlikely to succeed. Modern economies are deeply interconnected, and trade involves complex supply chains driven by technological advancements.