This lecture focus to presentation on Interdependence and the Gains from Trade. In this lecture, look for the answers to these questions Why do people and nations choose to be economically interdependent, How can trade make everyone better off and What is absolute advantage. Here use some to explain Gains from Trade, like here focus two countries, the U.S. and Japan, two goods: computers and wheat and one resource: labor, measured in hours. Here also discuss on Consumption With and Without Trade and Basic international trade terms.
Interdependence and the Gains from Trade
