Jammu, May 16 -- Concept of reciprocal tariff will never succeed in the present trade scenario
By Dr. Nilanjan Banik
Renowned Nobel laureate economist Robert Solow was once asked if having a trade deficit is bad for any economy. He answered by saying he would always have a trade deficit with his barber and would always run a trade surplus with his students. Such is the nature of the game in the realm of economic transactions. Some countries are always better at producing certain goods and services, which they export, and they gain by importing those they are not as good at producing. Arguing that the US should impose equal reciprocal tariffs is fundamentally flawed. It contradicts the principle of comparative advantage - the very foundati...