Chapter Three: Interdependence and the gains from trade

        
Chapter Three: Level of Difficulty 1
  Trade is a possible outlet to efficiency. Items can be produced in a way that not only benefit those who are producing, it may also benefit those who are consuming. There are advantages to the trading markets. The comparative advantage determines a specialization in products. The comparative advantage is  where there is a small amount of input but a large amount of output, all brought about when dealing with who has a lower opportunity cost per product. In all cases trade is to benefit production and consumption to have an overall greater prosperity. Trade will forever be all about the comparative advantage. Countries will always want to receive more for less. Throughout the chapter there are prices in which trade must lie itself within, but what would happen if the producers/consumers get ripped off? Has this happened before? When trading, what is the real cost when it comes to transportation? Do some products lack efficiency after the taxes? If trade increases consumption, does it increase employment as well, or are there some exceptions to this due to the 'efficient' way in which products are produced? I understand that the chapter was based on the basics, but overall the complications seem to be more interesting. The big bang idea is that trade is great, and the invisible hand helps plenty when it comes to own interests and prices. Production possibilities frontiers help make an outline of what goods should be imported and exported.