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Briefly explain what are three reasons why economists' and laypeople's view of trade differ?

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Solution Summary

Trade benefits are noted. The reasons why economists' and laypeople's view of trade differs is determined.

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The central point of difference between the point of view of economists and laypeople is the fact that economists look at it from the perspective of efficiency and laypeople look at it from the point of fairness! When economists talk about trade they talk about how countries and people gain by doing what they are best at. All trade models are based on this idea: you trade and concentrate on producing what you are good at producing and trade the rest. This way you will make the most efficient use of resources, and hence can produce more, and will therefore be better off.

Laypeople on the other hand are more concerned with their day to day affairs. If they see their neighbour lost the job that was shipped out to some other country they see ...

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