Table of ContentsInterdependence and Trade How do we satisfy our wants and needs in a global economy? Interdependence and Trade Interdependence and Trade Why is interdependence the norm? What determines the pattern of production and trade? A Parable for the Modern Economy Self-Sufficiency The Farmer and the Rancher Specialize and Trade The Principle of Comparative Advantage Differences in Costs of Production Absolute Advantage Comparative Advantage Specialization and Trade Absolute Advantage Comparative Advantage The Principle of Comparative Advantage Benefits of Trade Adam Smith and Trade David Ricardo and Trade Summary Summary Summary |
Author: Mark P. Karscig
Email: stutes@mnstate.edu Home Page: web.mnstate.edu/stutes |