Understanding the benefits of trade between countries is the most important topic in economics. Yet, when teaching comparative advantage students will invariably argue that trade, while providing long-run benefits, also imposes substantial short-run adjustment costs, which make international trade undesirable.
The most effective method of countering this argument is to demonstrate that the adjustment costs due to trade are just like the adjustment costs due to technological progress. And surely, we do not want to impede technologies like the automobile and the dialysis machine. So why hinder the benefits of trade?
My suggestion is to play the video Mexicans and Machines, created by the Reason Foundation and available at reason.tv here. It is superb, intelligient, and entertaining - a great teaching tool.
Monday, August 4, 2008
Blog Archive
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2008
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August
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- Interesting Price Floor Problem
- The Responsibility of Business
- SS-AAEA Paper Competition
- A Textbook College Career
- Marketing Research Tool - For Teachers
- Great Essay on Use of Information
- Becoming a Great Teacher: Part 3
- Useful Links
- Studying Really Does Help
- Why the Soviet Union Crumbled
- Becoming a Great Teacher: Part 2
- Agribusiness Students at Koch Industries
- British Humor for Libertarian Principles
- Teaching Character
- SS-AAEA Person of the Year: Trent Loos
- Research on Teaching
- Inspiration from John Steinbeck
- Great Video for Teaching Trade
- On Sale for $89.40....
- Superb Essay on Capitalism
- Back From AAEA Meetings
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