International trade theories only consider the benefits of trade and ignore any drawbacks.Question 26Answera.Trueb.False

Breakdown the Problem

1. Identify the statement regarding international trade theories.
2. Determine whether the statement is true or false.

Relevant Concepts

1. International Trade Theories: These theories explain the benefits of trade, including comparative advantage and economies of scale. However, many traditional theories primarily focus on the positive outcomes of trade, often overlooking negative aspects.

Analysis and Detail

1. While theories such as Ricardo's Comparative Advantage highlight the gains from specialization and trade, they do not typically address issues like income inequality, environmental damage, or the impact on domestic industries.
2. Some modern theories and critiques do consider the downsides of trade, but they are not traditionally included in earlier classic theories.

Verify and Summarize

1. The statement claims that international trade theories "only" consider benefits and ignore drawbacks, which aligns with the view of many classic trade theories.
2. Therefore, the answer is supported by the nature of traditional international trade theories.

Final Answer

b. False

International trade theories do not exclusively ignore drawbacks; modern discussions include considerations of negative impacts.