By Cindy Ivanac-Lillig
There have been stimulus plans, social programs, targeted monetary policies and a whole host of other policy interventions during this crisis. Although as natural as it may seem to want to use these vehicles to protect our employees and our products, the theory of comparative advantage — that provides the foundation for understanding the benefits of global trade — would say that as a whole, we will make ourselves worse off in the long run by engaging in this behavior.
There is a great, new resource in this fight to maintain global trade and the benefits that it affords. It is called Global Trade Alert. It is coordinated by many organizations including, but not limited to CEPR, DFID, IDRC, and The World Bank. It lists policy actions of major world players and which other countries the policy is most likely to affect through reduced commerce. Check it out.