Borders and Trade
Explore the relationship between borders and the benefits of specialization and trade. Discover how borders have no impact on the virtues and productivity of trade, as both sides benefit and raise their standard of living.In this clip
From this podcast
EconTalk
Russ Roberts on Smith, Ricardo, and Trade
Related Questions
If two nations specialize according to their individual comparative advantages and engage in trade, which of the following must be true? 1. Both nations will lose from trade. 2. Nations would be better off if they were self-sufficient. 3. Both nations can consume beyond their individual production possibilities curves. 4. Both nations can consume only what they produce.
If there is no comparative advantage between two countries, which of the following is true? 1. One country must be more productive in producing all goods than the other. 2. The benefits resulting from trade are increased. 3. There are no gains from specialization and trade. 4. Each country should specialize in the production of a particular commodity.
Suppose countries Alphania and Betania produce electronics and apparel using identical resources. Which of the following is true if Alphania exports electronics to and imports apparel from Betania within a free-trade system? 1. The opportunity cost of producing electronics is higher in Alphania than in Betania. 2. Alphania must be specializing in apparel, while Betania is specializing in electronics. 3. Workers in Alphania can produce more apparel per hour than workers in Betania. 4. Betania has a comparative advantage in producing apparel, and Alphania has a comparative advantage in producing electronics. 5. Consumers in Betania buy more electronics than consumers in Alphania.