What is the basis for trade? What advantages are there to specialization?
The advantages to specialization ARE the basis for trade. Specialization takes advantage of the fact that by doing what we are good at is easier than doing what we’re not good at — therefore we should be able to produce more by doing what we are good at and will be more likely to innovate which will thereby allow us to produce even more in a lesser amount of time which can then be spent on doing more of what we’re good at! Got it? Good.
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