Welcome to the sixth series of the Political Economic Digest.
In the last series we discussed about public choice theory which is the study of politics based on economic principles.
In this series we’ll be discussing about free trade and globalization. Free trade is a system in which goods, capital, and labor flow freely between nations, without barriers which could hinder the trade process.
The first reading is an introduction to free trade. In this the author discusses about free trade and its advantages and the harms of protectionist policies. He also outlines the supposed criticisms of free trade.
The second reading is an introduction to this theory. Thankfully, the author has tried to make it as simple as possible and incorporate some examples related to the theory. The arguments against free (arguments in favour of protectionism) are generally focused on promoting exports and discouraging imports.
The third reading is a chapter from the Nepali translation of the book called “The adventures of Jonathan Gullible” which is a satire at the protectionist policies. By now you must have been familiar with Jonathan Gulliblle, the protagonist. He has reached a new, strange city which loves exports but hates imports.
Finally, we have a famous essay by 19th century French economist Frederick Bastiat called “The Candle Maker’s Petition” in which the candle makers of his country ask their law makers to ban sun so that their candles sell more and higher. The satire is very witty and relevant to our context as well.
Read more in the uploaded file.