International trade and lower prices

International Trade leads to lower prices: Another common argument put forward to support international trade is that it lowers the price of goods and services. There are a number of reasons why international trade may lower prices: 1-      International trade allows firms to take advantage of larger markets which means they can take advantage of… Continue reading International trade and lower prices

Absolute and Comparative Advantage: Or, why your dad makes you rake the leaves.

So after talking to a couple of students I realize that before I start going through the pros and cons of international trade we should also consider the theoretical basis of international trade. I will put up some detailed comments on Absolute and Comparative Advantage later, but, for now, I hope the following analogy will help you… Continue reading Absolute and Comparative Advantage: Or, why your dad makes you rake the leaves.