{"id":802,"date":"2011-09-18T20:57:00","date_gmt":"2011-09-19T02:57:00","guid":{"rendered":"http:\/\/opengecko.com\/economics\/reasons-for-trade\/"},"modified":"2011-09-18T20:57:00","modified_gmt":"2011-09-19T02:57:00","slug":"reasons-for-trade","status":"publish","type":"post","link":"https:\/\/opengecko.com\/geckoview\/economics\/reasons-for-trade\/","title":{"rendered":"Reasons for Trade"},"content":{"rendered":"<p><font size=\"3\">Syllabus requirements:<\/font><\/p>\n<blockquote>\n<p><font size=\"3\">Reasons for trade       <br \/>\u2022 Differences in factor endowments        <br \/>\u2022 Variety and quality of goods        <br \/>\u2022 Gains from specialization        <br \/>\u2022 Political        <br \/><u>Higher level extension topic<\/u>        <br \/><\/font><em><font size=\"3\">\u2022 Absolute and comparative advantage (numerical and diagrammatic representations)         <br \/>\u2022 opportunity cost          <br \/>\u2022 limitations of the theory of comparative advantage<\/font><\/em><\/p>\n<\/blockquote>\n<p><em><font size=\"3\"><\/font><\/em><\/p>\n<p><font size=\"3\">The first bullet points should be quite well understood by most students after a little research and careful thought.<\/font><\/p>\n<p><font size=\"3\">This classic clip featuring Milton Friedman is often used as an argument for the free market, but I think it works particularly well as an argument for international (free) trade:<\/font><\/p>\n<h3><font size=\"3\"><font style=\"font-weight: bold\">Power of the Market &#8211; The Pencil uploaded by <\/font><\/font><a href=\"http:\/\/www.youtube.com\/user\/LibertyPen\"><font size=\"3\"><font style=\"font-weight: bold\">LibertyPen<\/font><\/font><\/a><\/h3>\n<p><iframe loading=\"lazy\" height=\"360\" src=\"http:\/\/www.youtube.com\/embed\/R5Gppi-O3a8?rel=0\" frameborder=\"0\" width=\"480\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><font size=\"3\">The Higher Level topics, particularly the concept of Comparative Advantage are trickier. However, the theory of comparative advantage is a vital argument in favour of international trade, and one well worth revising until you are confident that you understand it fully. Be sure to use diagrammatic explanations using PPFs, as well as numerical examples. Visit the following two related links in this order:<\/font><\/p>\n<h4><a href=\"http:\/\/opengecko.com\/ib-economics\/economics-game-ricardo-coconuts-and-a-desert-island\/\"><font size=\"3\">Economics Game: Ricardo, Coconuts and A Desert Island<\/font><\/a><\/h4>\n<h4><a href=\"http:\/\/opengecko.com\/economics\/understanding-comparative-advantage\/\"><font size=\"3\">Understanding Comparative Advantage <\/font><\/a><\/h4>\n<p><font size=\"3\">In addition, these excellent slideshows hosted on reffonomics.com will help you, particularly with the diagrams aspect.<\/font><\/p>\n<p><a href=\"http:\/\/www.reffonomics.com\/TRB\/chapter1\/ppcurve1.swf\"><font size=\"3\">http:\/\/www.reffonomics.com\/TRB\/chapter1\/ppcurve1.swf<\/font><\/a><\/p>\n<p><a href=\"http:\/\/www.reffonomics.com\/TRB\/chapter1\/ppcurve2.swf\"><font size=\"3\">http:\/\/www.reffonomics.com\/TRB\/chapter1\/ppcurve2.swf<\/font><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Syllabus requirements: Reasons for trade \u2022 Differences in factor endowments \u2022 Variety and quality of goods \u2022 Gains from specialization \u2022 Political Higher level extension topic \u2022 Absolute and comparative advantage (numerical and diagrammatic representations) \u2022 opportunity cost \u2022 limitations of the theory of comparative advantage The first bullet points should be quite well understood&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,10],"tags":[263,195,196],"class_list":["post-802","post","type-post","status-publish","format-standard","hentry","category-economics","category-ib-economics","tag-comparative-advantage","tag-international-economics","tag-trade"],"_links":{"self":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts\/802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/comments?post=802"}],"version-history":[{"count":0,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/posts\/802\/revisions"}],"wp:attachment":[{"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/media?parent=802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/categories?post=802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/opengecko.com\/geckoview\/wp-json\/wp\/v2\/tags?post=802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}