O'Reilly logo

The Complete Idiot's Guide to Economics, 2nd Edition by Tom Gorman

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

The Argument for Free Trade

Obviously, the example here is incredibly oversimplified. In the real world, scores of nations produce thousands of products, most with different cost structures and at different levels of efficiency. However, this simple example is the fundamental argument for free trade, which most economists support both in theory and in practice.
Economists support free trade because in general they want an economy, including the global economy, to deliver the greatest good to the greatest number of people. A look back at the example of United States and Japanese food and computer production will reveal the benefits of specialization and exchange.
If you pick any possibility from the range of production possibilities in Tables ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required