POLSCI 160 Lecture Notes - Lecture 7: International Trade, Comparative Advantage, Absolute Advantage
17 Oct 2017
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Document Summary
Economies as a whole benefit from trade, but Ex: critics of the wto say it enriches some countries and groups at the expense of others. Many americans have protested free trade agreements, such as the. Trans-pacific partnership, arguing that they send good jobs abroad where labor costs are lower and hurt workers at home. Freeing wealth for other uses (ex: many goods available at stores in the. Us come from china; labor costs there are low so products inexpensive) Instead of self-sufficiency, each actor concentrates on and earns income from what he does best and trades for his remaining needs. Concentration on one activity allows for greater efficiency. Adam smith; wealth of nations; spoke about the advantage of buying a commodity from a country that produces it for cheaper. Showed that division of labor and specialization of labor among. Showed that division of labor and specialization of labor among workers improves productivity and the countries gain economically.
