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S E14: Gains From Trade - Why Ringo played the drums

Think Like An Economist

CHAPTER

The Importance of International Trade

We gain from trade by each focusing on our comparative advantage, which is the job or task we can each do at the lowest opportunity cost. Americans tend to focus on producing those goods and services where they have a comparative advantage,. Likewise, australians focus on producing the goods and Services where they have an advantage.

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