Before we proceed further, we want to clarify the definition of trade we used in last week’s posts. We chose to regard trade as synonymous with exchange, but in most economic texts you’ll find exchange being used in context of ‘trade between individuals’ whereas trade is reserved for ‘trade between countries’. It’s not a big difference in our opinion but we thought it is an important one to clarify.
Before we dive into this final post, here’s a superb video that sums up what we have been learning all week. Check it out!
The implications of what we discussed yesterday are profound for modern society. Most of you reading this will end up working in specialised jobs that take advantage of your unique talents. For your skills to add value to society, you don’t have to be the best1; you just need to have a comparative advantage.