(c) Why do almost all economists oppose economic nationalism, and how is this reflected in their views of trade and migration?
HOW IT IS REFLECTED IN THEIR VIEWS OF MIGRATION (300-400 WORDS)
To understand why the majority of economists are against economic nationalism, we first have to define the concept. Google defines it as being "a situation in which a country tries to protect its own economy by reducing the number of imports and investments from other countries". However, another source suggests that it is not a real economic concept but a thought that concentrates on strategies that need domestic control of an economy, its labor force, and capital formation despite the possibility of imposition of tariffs and further restrictions on the movement of labor, goods, and capital. Based on these two sources alone, we can instantly recognize the flaws within economic nationalism because of all the different elements that have to be successful for the concept to be considered a success.
For example, the model UK economy needs to have a rate of growth that ideally exceeds inflation, presently the former is at 2. 0% in the UK, and the latter is currently 2. 3% as of March 2017, although the rate of economic growth meets the macroeconomic object the rate of inflation is too high. The economy would also need to provide more employment opportunities to attempt to reach full employment with the UK's goal <5. 0% unemployed as this is another of the macroeconomic objectives. Even with international trade with countries in the European Union, G20, and the rest of the world, along with the constant stream of migration and immigration that occurs, the UK struggles to achieve these objectives, so how would a high-risk strategy, which is what I believe economic nationalism to be, restricting international trade and controlling levels of migration prove a success. It would reduce significant factors of the UK's growth, perhaps suggesting that becoming reliant on domestic goods would be a good idea and capping migration would lead to economic growth.
Assuming economic nationalism refers to the recent political and economic policies Mr Trump has been backing it seems to rely on trade protectionism a means that indirectly discriminate against foreign workers, investors, and traders. Examples of this would include deliberate intervention in currency markets and government subsidies, which are only paid upon the purchase of locally produced goods and services. However, in order to impose the concept, international trade would need to appear less favorable, and perhaps the best way to go about it would be by placing a tariff on imported products, which would cause a contraction in domestic demand and an expansion in domestic supply.
The diagram above shows what happ...
