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Unformatted text preview: o I say “Everyone gains, and no one
loses from the international trade.” Am I right?
Why or why not? Outsourcing
To send out (work, for example) to an outside
provider or manufacturer in order to cut costs. Why Don’t We See Complete Specialization? • •
• Not all goods and services are traded
Tastes for products differ.
Production of most goods involves increasing
opportunity costs. Real Beauty in Many Asians’ Eyes Cosmetic Surgery: Before & After Where Does Comparative Advantage Come From?
Among the main sources of comparative advantage are the following: Climate and natural resources.
Relative abundance of labor and capital.
• External economies Reductions in a firm’s costs that result
from an increase in the size...
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- Spring '14