10 | Adam Smith on Progress
International Trade Introduction
You'll have the opportunity to learn more about fundamental ideas such as comparative advantage, increasing returns to scale, factor endowments, and arbitrage across borders. The consequences we discuss include the effects of offshoring, how trade has shaped the economies of China, Mexico, and Korea, when foreign direct investment is desirable, and the history of free trade and tariffs, among other topics.
The Wealth-Creating Logic of Exchange is Pretty Simple. Here It Is.
Scratch almost any economist and you will find someone who is firmly committed to free trade and, most likely, someone who largely agrees with his colleagues who signed a 2006 Open Letter to President Bush and Congress organized by the Independent Institute--for whom I serve as a Senior Research Fellow--arguing that immigration, even of low-skill workers, is a net boon to the US economy.