Final answer:
Trading is generally beneficial when there are differences in abilities or tastes, which is true. This is because of comparative and absolute advantage, leading to benefits for individuals as workers and consumers. However, the distribution of benefits is uneven and public policy must address the negative impacts.
Step-by-step explanation:
The statement that trading is beneficial whenever people differ in their abilities or differ in their tastes is generally considered to be true. The reason behind this is rooted in the economic principles of comparative and absolute advantage. When individuals or nations trade, they can specialize according to their comparative advantage - the ability to produce goods at a lower opportunity cost than others. This leads to increased efficiency and productivity, thus all parties can benefit from the trade.
However, the benefits of trade are not distributed equally. While on average an individual gains as both worker and consumer due to specialization, trade liberalization can create both winners and losers in the short term. High-skilled individuals might support trade even if they do not benefit directly because they might switch jobs easily and enjoy the greater variety and lower prices of goods available.
It is the role of public policy to balance these benefits and address the legitimate concerns of those adversely affected by trade, including workers in declining industries, the environment, and the various issues of international relations. Therefore, while trade can be beneficial, it also requires thoughtful policy to mitigate its negative impacts and distribute its gains more equitably.