《3 - Interdependence and the Gains from Trade》.pdf

IN THIS CHAPTER YOU WILL . . . Consider how everyone can benefit when people trade with one another Learn the meaning of absolute advantage and comparative advantage I N T E R D E P E N D E N C E A N D T H E G A I N S F R O M T R A D E See how comparative advantage explains Consider your typical day. You wake up in the morning, and you pour yourself the gains from trade juice from oranges grown in Florida and coffee from beans grown in Brazil. Over breakfast, you watch a news program broadcast from New York on your television made in Japan. You get dressed in clothes made of cotton grown in Georgia and sewn in factories in Thailand. You drive to class in a car made of parts manufac- tured in more than a dozen countries around the world. Then you open up your e