Analyze the relationship between trade openness and regime type.

Question

What will be an ideal response?

Answer 1

Ans: Free trade benefits almost everyone because it reduces prices for all consumers, and everyone is a consumer. Therefore, it is a public good. Trade protectionism benefits only a few at the expense of many. For example, protection of farmers increases prices and gives fewer incentives to domestic farmers to be efficient; thus, it benefits the farmers at the expense of consumers and farmers in other countries. Leaders in large-W coalitions have to provide public goods in order to survive in office. Leaders of small-W coalitions rely on the provision of private goods. Thus, large-W coalitions are expected to be less protectionist and more open to trade, while small-W coalitions are expected to be less open to trade because leaders will provide private protection benefits to the members of their coalition. In addition, there are intrademocratic variations that can be explained by the electoral rules.