Trade Liberalization vs. Protectionism
The current paradigm classical neo-liberal economics proposes free trade and allows state intervention only to “liberalize markets and lower distortions” (Wade 1990, 23). Consequently, most trade models oppose protectionism by nature. The simplest and probably most influential trade model is Ricardo’s comparative advantage. “[C]ountries will export goods that their labor produces relatively efficiently and import goods that their labor […]