A politically charged debate about foreign trade, tariffs and domestic jobs quickly obfuscates the economic, not political, reason a country engages in international trade: to improve that country’s overall economy.
The explanation is counterintuitive, but true nonetheless. Ignoring political considerations — an unrealistic fantasy — a country should import any good that an overseas trading partner can produce at a lower opportunity cost, regardless of which country could produce the item at the lowest absolute cost.
The U.S. is currently the world’s leading aviation manufacturer, responsible for 40 percent of the world’s aircraft; Mexico produces 45 percent of the world’s avocados, […]
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