Explanation:
Autarky is a policy against external trade; a closed economy that does not allow external trade, in an attempt to reduce a country’s dependence on external trade.
Trade in itself could be internal or external. According to economist David Ricardo a country having comparative advantage implies that the economy has the ability to produce goods and services at a lower opportunity cost than that of trade partners.
The group that gains in the case of International trade may lose in the long-run if a country imposes high tariffs and stops international trade, it may produce a local benefit in the form of new jobs and industry. However, this country will lose relative to its neighbors: countries that were already better able to produce these items at a lower opportunity cost.
