Is free trade between countries the same as between individuals?

actually left does not want to be consistent with limited govt, debt is good for them since only the rich pay it off. Get it now?

 

an individual, city, state, region, or country will have an advantage, thus you want to trade with them to benefit from the advantage. E.G., you want to buy bananas from Latin America rather than grow your own in a greenhouse at 20 times the cost. Do you understand now?

 

It's factor proportions that determines comparative advantage. Those factor proportions are typically irrelevant in city comparisons. If anything Krugman's new trade theory is more relevant (given the focus on inter-industry trade).

 

James M, comparative advantage is choosing among your alternatives; (i.e. choosing the most advantageous and/or the least disadvantageous). Individual persons or groups or nations may have comparative advantages.

Participants engaged in a commercial transaction do not, and need not consider our entire society; that's governments' duty. That's why we have public health and public fire laws and regulations. Regardless of an agreement's mutual profitability, something can be detrimental to the public's best interests.

I'm among the proponents of the “improved” trade policy described within Wikipedia's “Import Certificates” article. It is not “pure” free trade but it is pure competitive free enterprise and thus, substantially market driven. In the cases of our international trade, our federal government is not performing its duty.

Annual trade deficits are ALWAYS net their nation's GDP and thus to their numbers of jobs.

Respectfully, Supposn

 

You're merely referring to opportunity cost. Comparative advantage takes it much further, describing how countries gain from trade despite being apparently unproductive. It's a reaction against mercantilism.