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What is the theory behind international trade?

What is the theory behind international trade? Has globalization been good for the United States?

Address specialization and trade.
Address absolute advantages.
Address comparative advantages.

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The theory behind international trade is that countries benefit from specializing on a few products and exchanging those products with other countries who have also specialized. For example, if a country A is able to produce shoes for 2 units of labor and another country B is able to produce shoes for 1 unit of labour, one can say that the second country B has an absolute advantage on the production of shoes because it takes then less resources ...

Solution Summary

What is the theory behind international trade? Has globalization been good for the United States?

Address specialization and trade.
Address absolute advantages.
Address comparative advantages.

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