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Why Would Division Of Labor Without Trade Not Work?

330 Words2 Pages

Below are my responses to two of Critical Thinking Questions” found at the end of Chapters One and/or Two.

Why would division of labor without trade not work?

The key purpose of the division of labor or specialization is to efficiently increase the quality of production, resulting into higher volume of products. More quality products made, equates to, more available goods to be sold. Provided that, this is where trade is essential to the process. The textbook discussion of Production Possibility Frontier (PPF) between US and Brazil is a great example. The scenario where US can product mass wheat per acre, while, Brazil can product mass sugar per acre. There is clearly a demand for both produces, avoiding trade will simply halt production

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