The purpose of trade is to make one person better off at the expense of another. On the first day of my principles of economics class, I challenge students with several true-false statements, including this one.
Most students agree that the statement is false.
In the absence of coercion, two people trade because they both believe that it will make them better off. Opponents of free trade express concerns about the degradation of the environment and human rights abroad and job loss at home. While workers in developing nations often labor under appalling conditions, trade is not necessarily the cause of the problem and may even alleviate it. On the other hand, it is true that people in import-competing industries benefit from protectionist policies, but their gains are purchased at a larger cost to the rest of society. Economists have been virtually unanimous for two centuries in arguing that the benefits of free trade far outweigh the costs.