Abstract
This document discusses the benefits of international trade, citing various economic theories and historical examples, including the work of Paul Krugman, Adam Smith, and David Ricardo.
Extract
[...] We will also discuss the period known as "Sakoku" (1650-1842), during which Japan was in voluntary isolation from the rest of the world. In a second part, we will nuance our argument by addressing not only the physical constraints weighing on most countries and advanced economies, pushing them to engage in international trade, but also the gains linked to exchange. The autarkic regime can, first of all, present certain virtues. To understand this, it can be useful to refer to Maslow's pyramid. [...]
[...] Finally, from a geopolitical perspective, not relying solely on domestic production allows a country to strengthen its international relations and enter into greater cooperation with other countries. Trade creates economic interdependencies that can promote the peaceful resolution of conflicts and global stability. This is what Montesquieu called the "doux commerce". In conclusion, we can say that an autarkic regime, based by definition on domestic production alone, can have virtues. In fact, as we have seen, the needs of a population cannot be reduced to economic needs alone. [...]
[...] The historical example of Japan shows, in any case, that a society that is self-reliant can grow and meet the needs of its population. However, systems that rely solely on domestic production face limitations, including physical and technological constraints, particularly in terms of natural resources and new technologies and economies, with the absence of gains from trade. The period that is opening will be closely linked to the ecological transition. The question of satisfying human needs will therefore take on a new dimension in the years to come. [...]
[...] The first of these are related to physical and technological constraints. In fact, by participating in international trade, countries gain access to a much wider range of resources. Whether it is essential raw materials for their industry, such as oil for France or cobalt for many countries, or cutting-edge technologies, trade openness allows for filling national gaps and inequalities related to access to natural resources. These exchanges also facilitate the transfer of know-how and technological cooperation, as exemplified by the Marshall Plan, which enabled a rapid reconstruction of Europe after World War II. [...]
[...] This isolation was established by the shogun Iemitsu Tokugawa. It was, in the first instance, a matter of consolidating the power of the shogun (i.e., the ruler of Japan) and preserving national unity in the face of external threats, particularly European. The Europeans were perceived as threats and accused of wanting to destroy the foundations of power in Japan and convert the local population to a new religion, Catholicism. It was in this context that the shogun Iemitsu Tokugawa decided to implement a relatively strict autarkic policy, drastically limiting exchanges with foreigners. [...]
