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Old 08-08-2019, 10:42 PM
DragonAsh is offline
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Join Date: Feb 2006
Posts: 2,497
Quote:
Originally Posted by Sage Rat View Post
Smith made the argument that you could give up entire industries and simply trade for what you need, allowing others who are more inclined to the work and more capable of the work to do that
You left out a key word here: they have to be *relatively* more capable (ie, lower opportunity cost). A person (or country) can be 'more capable' in absolute terms in all goods, but still be better off trading with a country 'less capable' in absolute terms, as long one side as a 'relative' advantage.

Otherwise no developed nation would want or need to trade with a developing nation.
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Last edited by DragonAsh; 08-08-2019 at 10:43 PM.