Is Free Trade Passé,” Paul Krugman
Free Trade
In the article, “Is Free Trade Passé,” Paul Krugman summarizes and explains research that challenges, and presents alternatives to, the assumptions of classical
trade theory based on comparative advantage. In a 4-6 page paper (12-point font, double-spaced) summarize positions that challenge the assumptions of constant returns
and perfect competition (keeping in mind that empirical validation of trade theory requires only reasonable approximations to these conditions) and discuss the
implications for classical trade optimism (the argument that free trade is always “a good thing”) and for trade policy and practice