8cda82da_brary_of_Economics_and_Liberty__ast_Highlights_HIDE_HIGHLIGHTS
[Time] 35:25
National borders. Manuel Ayau: If in 1988, it was good for Vaclav in Prague, western Czechoslovakia, to trade with Vladimir in eastern Czechoslovakia, is it any less important for the same Vaclav to trade with the same Vladimir now that the country is split in two? The economic relevance of political borders is zero. Governments are notoriously prone to protect. Hong Kong though has largely practiced free trade. United States itself is a gigantic free trade zone, 13 original states were a free trade zone. Why does the optimum amount of specialization occur between national political boundaries?
Don Boudreaux on Globalization and Trade Deficits | EconTalk | Library of Economics and Liberty