Social Sciences and History / Unit 15 SSH 1426 short lesson, about 20 seconds
Gains From Trade Even With Absolute Advantage in Everything
Captions available
The idea
Even a country with high productivity in every good benefits from trade, because gains come from comparative advantage. By specializing in the good it gives up least to produce, it makes more to sell, and gains from others' lower opportunity costs.
In practice
The best lawyer who still hires a typist.
Where people slip
Comparative advantage in everything is impossible.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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