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InterdependenceandtheGainsfromTradeInterdependenceandTradeInterdependenceandTradeHowdowesatisfyourwantsandneedsinaglobaleconomy?InterdependenceandTradeInterdependenceandTradeWhyisinterdependencethenorm?Whatdeterminesthepatternofproductionandtrade?Imagine...onlytwogoods:potatoesandmeatonlytwopeople:apotatofarmerandacattlerancherWhatshouldeachproduce?Whyshouldtheytrade?TheProductionOpportunitiesoftheFarmerandtheRancherSelf-SufficiencyProductionPossibilitiesFrontiersProductionPossibilitiesFrontiersTheFarmerandtheRancherSpecializeandTradeTheGainsfromTrade:ASummaryTheGainsfromTrade:ASummaryTradeExpandstheSetofConsumptionPossibilitiesTradeExpandstheSetofConsumptionPossibilitiesTheGainsfromTrade:ASummaryThePrincipleofComparativeAdvantageDifferencesinCostsofProductionAbsoluteAdvantageComparativeAdvantageSpecializationandTradeAbsoluteAdvantageTheOpportunityCostofMeatandPotatoesComparativeAdvantageComparativeAdvantageThePrincipleofComparativeAdvantageBenefitsofTradeAdamSmithandTradeDavidRicardoandTradeShouldTigerWoodsMowHisOwnLawn?SummarySummarySummaryGraphicalReviewProductionPossibilitiesFrontiersProductionPossibilitiesFrontiersTradeExpandstheSetofConsumptionPossibilitiesTradeExpandstheSetofConsumptionPossibilities