Technical Analysis in Foreign Exchange – The Workhorse Gains
In Class – Week 2 Gains from Exchange Why do people willingly trade?
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In Class – Week 2 Gains from Exchange Why do people willingly trade?
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Transcript of In Class – Week 2 Gains from Exchange Why do people willingly trade?
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In Class – Week 2
Gains from ExchangeWhy do people willingly trade?
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Comparative Advantage and Trade
Learning Objective 2.2
Trade The act of buying or selling.
Specialization and Gains from Trade
FIGURE 2-4
Production Possibilities for You and Your Neighbor, without Trade
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How does this work?
• Two people in this market– You and Your Neighbor
• Two goods being produced– Apples and Cherries
• See if you can do better by specializing– That is, what has the least opportunity costs for
each of you to produce• What will be the market price for exchange?