for a small country like the Philippines, a move to free trade would have huge advantages.It would let consumers and producers make their choices based on the real costs of goods,not artificial prices determined by government policy; it would allow for entrepreneurship; and, most important, it would help to clean up domestic politics." Separate out and identify the arguments for free trade in this statement.
Answer:
Argument 1: It would let consumers and producers make their choices based on the real costs of goods,not artificial prices determined by government policy. If goods are not subsidized then the law of comparative advantage would take over.
Argument 2: It would allow for entrepreneurship. This also is part of the comparative advantage policy.
Argument 3: most important, it would help to clean up domestic politics. When there are subsidies there are plenty of people looking for a handout or a protectionist move from the government. If you can remove corrupt politicians from the equation things have to get better.
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