Tariffs and Conservation of Resources

Tariffs and Conservation of Resources It is sometimes argued that since a nation's natural resources are limited, they should be exported, if at all, in limited quantities .. Tariffs are proposed as a way of limiting the import of goods which might be exchanged for such exports. Other means of restricting exports are also advocated. It is clear that the natural resources of a nation may be depleted through interna,tional give-away schemes and wars. But in ordinary peacetime trade carried on between individuals and firms of different nations, no such charge can be made with regard to overall resources. As I have repeatedly pointed out, a voluntary trade benefits both parties. If a firm in the United States exports copper, there is, of course, less copper in this country. But what ever this firm receives for the copper is more valuable to the firm than is the copper. And, presumably, no domes tic buyer of copper is willing to pay more than the foreign buyer; otherwise the copper would not go for export. To that extent, because someone gains and no 62 one loses, consumers are better off after the trade. Such is the case with all voluntary exchanges.