Specialisation and trade question?
http://postimage.org/image/tqwv7y5vl/
pretty much : do NOT waste your time and resources making something basic and unsophisticated as say straw hats….
best to specialize in manufacturing something that involves more inputs and value added products.
Trade with countries that has MORE labor inputs…. (which is cheap)…. and use the saved time and labor into making more value added products…. straw hats versus cars.
my 2cents
Posted: March 27th, 2012 under Economics.