How the fuck can a *Billionaire, like Trump not understand a concept as simple as Comparative Advantage?
-
-
Comparative Advantage explains how countries working together, even if one is much less productive, results in a surplus of goods that one country alone could not create. How is that possible? Okay so this was the example that I first read about.
Show this thread -
Lets say that a US worker can produce 10 cars or 5 bags of grain & a Mexican worker can produce 2 cars or 3 bags of grain. Now, if Mexico & US work together 2 Mexican workers can stop producing cars to produce grain & 1 US worker can stop producing grain to produce cars.
Show this thread -
Now even after Mexico trades the US, grain for cars, there is still 1 more bag of grain & 8 more cars in the world than there would otherwise be. That's why being Nationalistic & isolationistic hurts countries economically. Globalization works for a reason people!
Show this thread
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.