Classical and Neoclassical Trade Theory Makes the Case That Free

question 29

Essay

Classical and Neoclassical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and hence is an optimal trade-policy, if the objective is maximizing long term economic growth. There are those who argue that the experience of the Asian Miracle countries, such as Taiwan, South Korea and Singapore verify this argument in the real world. Explain. There are others who argue that the experience of these countries cannot be used to verify or support the argument above. Explain.

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Definitions:

Superstructure

A concept in Marxist theory referring to the cultural, ideological, and institutional structures built upon the economic base of society.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

Male Dominance

A societal structure where males possess the majority of power, dominating in positions of governmental leadership, ethical oversight, societal advantage, and ownership of assets.

Descent

A term used to describe the process of deriving ancestry or lineage, usually traced through parental lines which can be matrilineal, patrilineal, or bilateral.