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The Choice: A Fable of Free Trade and Protectionism Updated Edition, by Russell D. Roberts
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This supplement is appropriate for principles of economics, surveys of economics, international economics, international trade, or managerial economics. No prior economics is assumed, but the material can be taught at all levels. *Written as a novel, the book makes the complex concepts, issues and terminology of international trade understandable for students. *David Ricardo comes to life to discuss international trade theory and policy with Ed Johnson, a fictional American television manufacturer seeking trade protection from television manufacturers. Their dialogue is a sophisticated, rigorous discussion of virtually every major issue in trade theory and policy. To illustrate the positive and normative effects of international trade and trade policy, Ricardo takes the reader and Ed Johnson into the future to see an America of free trade and an America of complete self-sufficiency. The fictional element brings these topics to life so that students gain the intuition and understanding of how trade changes the lives of people and the industries they work in.The fundamental intuition of how international markets function including general equilibrium effects and policy analysis is provided.
- Sales Rank: #628960 in Books
- Published on: 2000-05-01
- Original language: English
- Number of items: 1
- Dimensions: 9.06" h x .36" w x 5.94" l,
- Binding: Paperback
- 116 pages
Review
"Brilliantly conceived."—Martin Wolf, Financial Times
"Gather around all of you who have been flummoxed by concepts like comparative advantage and purchasing power parity, puzzled about the difference between a tariff and a quota, or confused about which is better—fair trade or free trade. Russell Roberts explains the mysteries of global life in a heartwarming tale you won't soon forget."—Susan Lee, The Wall Street Journal
"Russell Roberts' clever allegory clearly points out the fundamental danger threatening free trade: the favoring of the few at the expense of the many. More importantly, he makes a difficult situation understandable…and enjoyable!"—Fred Smith, CEO, Federal Express
"…Puts the complex…issues surrounding…theemerging global economy into understandable terms. The ending is a surprise, the journey a pleasure. And the payoff for the reader is a broader, more vivid appreciation of trade issues."—Doug Harbrecht, Business Week
From the Publisher
David Ricardo comes to life to discuss international trade theory and policy with Ed Johnson, a fictional American television manufacturer seeking protection from Japanese televisions. Their dialogue is a sophisticated, rigorous discussion of virtually every major issue in trade theory and policy. To illustrate the positive and normative effects of international trade and trade policy, Ricardo takes the reader and Ed Johnson into the future to see an America of free-trade and an America of complete self- sufficiency. The fictional element brings these topics to life so that students gain the intuition and understanding of how trade changes the lives of people and the industries they work in. The fundamental intuition of how international markets function including general equilibrium effects and policy analysis is provided.
From the Inside Flap
Preface
In the early 1990s, when this book was first published, many Americans were deeply fearful of Japan. Analysts, experts, and pundits claimed that the Japanese government and Japanese companies were waging and winning an economic war against the United States. Highlights of the Japanese strategy included subsidies to key technologies and excluding American products from the Japanese market. Some experts urged America to get tough with Japan; others wanted America to fight back by copying Japan's policies.
Much of the first edition of this book was devoted to a different point of view, rejecting the whole concept of economic warfare at the national level and arguing that although Japanese and American companies are in competition, Japanese success does not come at the expense of America. The debate seems quaint today; the Japanese economic malaise and the extraordinary performance of the American economy have pushed the Japanese-American economic relationship out of the headlines and out of the minds of the American people.
In this revised edition, I have de-emphasized the discussion of Japan's economic relationship with the United States. I do this with some trepidation. When the American economy falters and Japan's recovers, we will surely hear again of why Japan is a threat to the United States. So I have left in some of the material about Japan to innoculate the reader against future outbreaks of Japan-bashing.
In addition to de-emphasizing the U.S.-Japan relationship, I have added discussions of topics that have grown in importance since the early 1990s. In particular, I have added a new chapter on trade deficits (chapter 10) and a new chapter on trade with Mexico and low-wage nations (chapter 12).1 have added discussions of environmental issues, labor standards, and the World Trade Organization. I have moved the date of the story from 1995 to 2000 and updated. the data where relevant. I have included discussions of recent developments like the Internet and moved and merged material from the first edition in ways that make more sense to me now.
Russell Roberts (roberts@csab.wustl)
Center for the Study of American Business
Washington University in St. Louis
Most helpful customer reviews
2 of 3 people found the following review helpful.
Economic Solace
By A Customer
This is a wonderful story for all in need of a little economic solace. Russ Roberts (who is wonderful in person) illustrates a world of free trade in a charismatic fictional story. Reminiscent of It's A Wonderful Life, the "angle" David Ricardo teaches an american tv manufacturer why free trade is so important even if it does destroy his business, so convincing is Roberts that I teared up on occasion and bought a copy for everyone I knew. The Choice is a book too compelling for anyone with any kind of education not to believe in the power of the Market.
2 of 2 people found the following review helpful.
Capable of convincing even the most cynical skeptic...
By Michael Granoff
...that free trade benefits EVERYBODY in the long run. If you have doubts about the matter, buy the book. Roberts analyzes every critique of open trade policies and systematically, in thoroughly entertaining fashion, dismantles them. If you're a frustrated free-trader in a sea of protectionists who talk in platitudes, BUY THIS BOOK FOR THEM! It worked for me!
0 of 0 people found the following review helpful.
Must Read
By David Hawkins Benson
Required reading for everyone interested in why the economy is the way it is! Simple story, but great lessons in there for economists of any level.
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