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QUESTION: Define the two approaches a nation can take to achieve free trade. Does one approach have an advantage over the other?
First approach to achieve free trade:
Second approach to achieve free trade:
In my opinion, I believe that the second approach, more specifically a multilateral action has a few advantages over the other approaches. This is because it has the potential to result in freer trade than a unilateral approach because it can reduce trade restrictions abroad as well as at home. In addition, a multilateral approach has a political advantage in that in most markets, producers are fewer and better organized than consumers.
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