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We are not trading Spanish port wine for English cloth anymore. We are not generating comparative advantage simply on the basis of our home market labour costs and technology base. We are building it by looking for efficiency advantages at a dozen points down global supply lines. Even countries that specialize in making the same things will generate trade and growth if they can find innovative ways to produce differentiated product ranges and lower their costs through specialisation...
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We are not trading Spanish port wine for English cloth anymore. We are not generating comparative advantage simply on the basis of our home market labour costs and technology base. We are building it by looking for efficiency advantages at a dozen points down global supply lines. Even countries that specialize in making the same things will generate trade and growth if they can find innovative ways to produce differentiated product ranges and lower their costs through specialisation...
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