Final answer:
Ferdows and de Meyer discuss the concept of trade-off theory in the business context. However, when it comes to the gains from trade in economics, the general view is to embrace the gains and manage costs via other policies, rather than avoiding trade altogether.
Step-by-step explanation:
According to Ferdows and de Meyer, the trade-off theory suggests that companies must make a compromise between competing objectives and cannot excel simultaneously on all dimensions. However, this theory may not apply in all cases as portrayed within the context of economic literature, particularly when discussing the benefits and costs associated with international trade.
The common consensus among economists, as they discuss in research parallel to the arguments presented by M.J. Melitz, and D. Trefler, is that it is generally more advantageous to embrace the gains from trade and then use other policy tools to deal with the associated costs and trade-offs, rather than to entirely shut off trade as a means to avoid these costs and trade-offs. This pragmatic approach recognizes that while trade-offs do exist, they don't necessarily validate the cessation of international trade, as the overall gains often outweigh the disadvantages.