Fallacy Of Composition

Fallacy of composition in Global Commerce Policy

In this regard, a definition of this issue is as follows: the dilemma, as explained for example in the 2002 Trade and Development Report that on its own a small developing country can substantially expand its exports without flooding the market and seriously reducing the prices of the products concerned, but this may not be true for developing countries as a whole . Proponents of this view often use the analogy of spectators in a football stadium. The entries on trade policy are here. If the people in the front rows stand up to see better, those in the seats behind also have to stand up. The result is that hardly anybody is better off. The fallacy lies in assuming that if something works for one economy, it could or should work for lots of others also. See also prisoner ™s dilemma.[1]

Fallacy of compositionin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Fallacy of composition” entry (OAS)

See Also