I.R Essay Example | Topics and Well Written Essays - 500 words - 1

I.R - Essay Example This is clear in the theory of comparative advantage attributed to David Ricardo as well as in the â€Å"standard theory of international trade† that are both discussed in many of the undergraduate and graduate books of economics. One of the books discussing the two topics, for example, is that one by Krugman and Obstfeld (2003). A policy of trade liberalization adopted by policy makers through the political process commit a country to an economic environment that requires the conversion of tariffs to quota as well as the reduction of tariffs which are the standard policy prescriptions under the World Trade Organization (WTO). On the other hand, a policy of autarky emphasizes on the policy of â€Å"self-reliance† wherein nations produce all what they need. In contrast, the policy of trade liberalization emphasizes on interdependence among nations wherein self-reliance is achieved through domestic production as well as trade with other nations. In other words, the forego ing emphasizes that policy regimes that are adopted through the political process determine trade policy and, consequently, policy regimes or politics determine people’s access to higher welfare levels. Second, the discipline of economics recognizes that there is a definite and solid political economy dimension in the adoption of protectionism rather than trade liberalization. For example, this is clear in Salvatore (2001, p. 293-298).