George Mankiw, the Chair of the Council of Economic Advisors to President Bush and several other Republican politicians, currently a professor at Harvard once said that comparative advantage was one of the few concepts in economics that professionals agreed upon. Recently, in the wake of trade wars globally, Mankiw proposed that if the goal of these wars is to support American production and consumption, we should impose a “tariff” or tax on American consumers visiting Trump properties in Scotland (for golf) and other parts of the world to encourage American locations. How does this fit with the notion of comparative advantage? Provide brief arguments for it and against it and justify your choice in your response.

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Comparative advantage is an economic term which defines the ability of an economy to produce the goo... View the full answer