We will illustrate this idea graphically, though the principle is quite simple. If each trading partner specializes in production of the good in which she has a comparative advantage, trade will make it possible for each producer to attain outputs that lie outside their Production Possibilities, which means they can attain outputs that would be impossible to achieve without trade. The same logic applies to most productive enterprises. In most businesses the attempt is made to give duties to employees so that they can specialize in their area of comparative advantage. We'll use Jeff and Jenn to illustrate how specialization and trade lead to gains for both.
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