Trade policies increase welfare by reducing monopolies and boosting firm size.
The article looks at how trade affects industries where companies make the same product and can easily enter or leave the market. Trade is found to be good because it reduces monopolies and makes companies bigger, which is good for everyone. The study also looks at how technology and resources impact trade patterns. Import taxes can actually help the country that imposes them, and different types of industry support can have different effects on the economy.