Chapter 3: Interdependence and the Gains from Trade

Chapter three is mostly about comparative advantage and how it relates to the trade market. The overall concept was to stress the importance of how good trade is and the benefits of it at a national and international level. Trading and specializing in what you do best is important to raise the benefits and prices of the good. By doing so, the size of the pie gets bigger, which is the goal of the economy. The rate I would give this chapter is a 1, being relatively easy. The only question I have is why could trade by like war? An idea similar to this was mentioned at the end of the chapter and it left me uncertain.