Free Discussion week 4 ECN221_1 Dissertation Example

Role Specialization Plays in Trade Name Institution Role Specialization Plays in Trade Specialization in trade is one of the most known ways that a country or an individual can increase its product through making the optimal use of the resources available. Specialization refers to the concept where an individual produces what he or she is good at and hence uses it to trade for what he or she does not present well. The idea of competitive advantage is, therefore, the guiding factor for trade that leaves all the traders well off. The concept of specialization and competitive advantage in trade has a lot of benefit for all the traders since; it gives the opportunity to make use of the little available resource efficiently without wasting it to produce. In this case, an in individual is said to have a comparative advantage if he or she uses little effort regarding technology, labor capital and time to produce than the other person (Lazzarini, 2015). In this case, when both indi...