Then Japanese agricultural minister Masami Tanabu on rice imports, which were banned in his country at the time: "A country imports something which it is unable to supply by itself. I prefer not to talk about imports of something which a country is able to produce enough of. I think that is what trade should be." Using everything that you've learned, critique Mr. Tanabu's statement. What sort of view of trade is this?  Would David Richardo have approved of this policy?  Who benefits and loses from this Japanese policy? (Note: Japanese consumers were paying several times the world price for rice, their main staple, at the time Tanabu made his remarks.)

 

Answer :-

The Japanese agriculture minister mastaani tanabu has said that a country should import what it shortage within the home country ansan what it can not be supplied fully by it he is opinion that what the country can supply itself a good quantity should not be imported into but the iMport should be what country can not supply itself this is where the trade should exist and no where else .

Criritic :-

1. If everything that is imported in the country which is short in the country there will be less benifits of globalisation and less open economy

2. In such cases the foreign goods technology the country would not be able to receive if the hom. Country produce already

3. In such case the innovation best technology of foreign country will not be received where the country supply product to itself .Which will keep welfare of people low

4. The competition of foreign goods with home country will fall mean hereby lower quality goods in country and decrease competition in forms with foreign goods and lack of innovation encouragement .

David would not have introduced this policy being it's criticism

Step-by-step explanation

Benefits of the policy :-

1. The nation become independent of what is can supply .

2. Less foreign currency demand will make county exchange rate stronger

3. Balance of balance of payment

4. Independent nation

Losses :-

1. Decrease welfare of people by non receipt global upgrades technology

2. Discouragement to innovation in home country

3. Foreign technology not receipt

4. Competition of domestic goods with foreign firms will not be there

5. Since domestic goods not competitive with foreign welfare decrease of people .