Economics Discussion assignment
Background
Specialization and Trade are co-dependent! If we did not specialize we would have no surplus to
trade, and if we could not trade away our surplus we would not be free to specialize.
In 1816 David Ricardo developed the theory of Absolute Advantage, which occurs when a country
can produce a good more efficiently (using fewer resources); in contrast to Comparative Advantage,
which occurs when a country produces a good at a lower opportunity cost (the country gives up less
when they produce a good).
It is a cardinal rule/law in economics that trade creates wealth, and whether we know it or not, we all
benefit from the application of this law every time we trade to increase our personal well-being.
Please watch this brief video on how we all gain through trade:
“Specialization and Trade: Because We Can’t Be Good At Everything” | LearnLiberty
(https://www.youtube.com/watch?v=e0H7r_Dl1CQ)
Search entries or author
(https://www.youtube.com/watch?v=e0H7r_Dl1CQ)
Just as specialization is the basis for individual, person to person trade, so also it is the basis for
international trade, because few (if any) countries produce enough goods to be completely selfsufficient.
Prompt:
Trade is considered absolutely essential to the well-being of every one of us. We are all better off
through trade than we could possibly be through trying to provide all our own needs. This holds true
for individuals, firms, and economies.
After reviewing these materials, your Week 4 Discussion Assignment is to now discuss the role
specialization plays in trade. To help illustrate your argument, please also provide some examples of
specialization in regards to trade.
Discussion Forum Instructions:
WHAT: You will be writing three or more discussion posts per week. Your main post must be two to three substantive
paragraphs 150+ total words and include at least one APA-formatted citation/reference. Please follow up with two
subsequent replies to colleagues. Each reply should consist of a relevant paragraph containing 50 words or more.
WHY: Discussion questions are designed for you to demonstrate your knowledge and understanding of the weekly
material. This forum provides an opportunity to develop ideas and concepts with your instructor and peers. This
discussion format assists with development of communication skills and critical thinking necessary for success in the
modern workplace.
HOW: Your posts should be substantive, demonstrate independent thought relevant to the topic, and encourage
continued discussion. Please avoid simply repeating previous posts and agreeing. Provide supporting evidence for your
ideas and opinions through the use of personal or work examples, relevant articles or websites, or concepts covered in the
week’s readings. Best practice: compose and save your discussion post in a word processing document, then copy and
paste it into the Discussion Forum.
WHEN: For full credit, your first post must be made by Wednesday at 11:59 p.m. (MT), and you must post the remaining
two before Saturday at 11:59 (MT). You are expected to participate in the ongoing discussion on at least two different
days during the week.
Click here for sample APA-formatted discussion post
(https://online-shc.com/arc/studentinfo/citations.php)
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