No bio available

Business > International Business & Trade The benefits of free trade

4 of 23

The economist Adam Smith was the first to formulate why free trade is benificial to ALL people involved. Bare with me and look at the following example. It's brilliant in it's simplicity and would easily have won Smith the Nobel prize - had that prize existed in his time...

Let's say that the Italians manufacture cars for 10.000 dollars a piece and sell them for 11.000 dollars. They also produce a thousand sausages for 10.000 dollars and sell them for 12.000 dollars. Their profit on cars is a 1000 dollars, on sausages 2000 dollars.

The Germans also produce cars and sausages, but their...

More..

• Marketplace Premier Writer