Most countries erected trade barriers in the wake of the Great Depression of the 1930s, in order to boost the production and consumption of domestic goods and to lower unemployment. But if all countries adopt similar measures, global demand at best stays the same, while global trade and productivity fall. Countries can no longer produce and export more of what they have a comparative advantage in, since they are unable to access foreign markets, leading to a slow recovery. US-India trade remains balanced, so unfair moves of this nature should be avoided.
Read Full Article »
