Opening-up spurs upgrading of economy

In his famous book The Rise and Decline of Nations, Mancur Olson, the late economics professor at the University of Maryland, argued that if societies don't continuously evolve their economic structures, then they will become stagnant and innovation will stop.

Industry groups will try to use protectionist policy to protect their position, thus hurting economic growth and leading to national decline, he said.

Opening up to foreign competition is an essential step toward preventing this ossification. Many historical examples show that a nation that tries to protect its industry from competition just ends up with inefficient industries and a left-behind economy.