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Despite the accepted benefits of comparative advantage, international trade has been impeded by various governments around the world through the implementation of protectionist policies such as:
· The infant industry argument
· Changing comparative advantage and the inflexibility of workers
· To prevent dumping and other unfair trade practices
· To improve a country’s terms of trade by exploiting its market power
· To protect declining industries.
You are required to provide counter-arguments to the protectionist policies listed above.
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