Competition and Free Trade

Book excerpt: Competition and free trade are both concepts which are absolutely central for the understanding of human societies but are also often the subjects of fears and criticisms. It is argued that it is not possible to understand what competition really is without referring to the concept of freedom, and that free trade must be understood as the way to expand the scope of competition. This book uniquely analyses the two concepts as closely interlinked, by approaching them in two parts. The first, ‘Competition’, introduces the reader to the traditional competition model, and explores the dynamics and range of the term in an authoritative way. The second part, ‘Free Trade’ examines the different types of trade, and analyses them in a wealth of contexts, from customs duties to import quotas. With discussions surrounding protectionist arguments, politics, liberalization and history, the author presents an overview of how competition and free trade operate in the real world. This book dispels the fears and misunderstandings which have developed around these central pillars of the modern economy and is essential reading for those studying international economics, international trade, political economy or corporate finance.