Trade is always helpful

Mutual benefit is the foundation of any voluntary exchange. The Partiesagree to an exchange, hoping to increase his wealth.Trade, under which economists understand every voluntary exchange,is a productive activity: it allows each partyget more of what she had.There are three main reasons for the sale of productive, that is,increases the welfare of the people.First, trade provides products and services available to those whovalue them the most.This product does not have value by virtue of its existence: it iswealth in the hands of someone who appreciates it. Preferences, outlook andgoals of people are very diverse, and a product that practically nothingstands for one, can be a treasure for another. For example, forpurely scientific book on electronics, does not represent value forart collector, an engineer can lay hundreds ofdollars. In turn, the picture is nothing meaningful to the engineer maybe the subject of enormous value to the collector. Consequently, thefree exchange, in which the book gets to the Electronicengineer, and the picture - to the collector, and the value increases, andother.At the same time, due to the exchange, increasing the welfare of both the participatingpartners in it, and the country as a whole, as goods are moved from thepeople that they are valued less for those who appreciate them more.Secondly, the exchange allows trading partners to benefit from specializationin the production of those things that they do better than others.Specialization increases the total production. Associations of peopleregions or whole countries are able to produce more when theyspecialize in goods and services they produce lowcosts and revenues from their sale are used to purchase goods,production which their costs are high. Economists call this principle"Law of comparative advantage." Examples of beneficial effects of specialization can lead toinfinity. For example, trade enables specialization skilled carpenterin the manufacture of log cabins, directing revenues received for the purchase of food,clothing, automobiles and many other products, production of which he is notso skilled. Similarly, because of trade, Canadian farmers cangrow wheat and spend the proceeds from its sale to purchaseBrazilian coffee - goods that Canadians could produce onlyvery high costs. In turn, the Brazilians cheaper to usetheir resources for growing coffee, and the proceeds from its sale to buyCanadian wheat. The total volume of production increases, and bothtrading partners are in the win.Third, the free exchange allows you to benefit from the division of labor andmass production.If there is no exchange of industrial activity would be limitedsubsistence farming. The exchange provides an opportunity toproduction process as a sequence of independent operations, whichleads to a tremendous growth in labor productivity."The father of economics" Adam Smith over 200 years ago, highly valuedthe benefits of division of labor. Exploring the activities of manufacture ofmaking pins, Smith noticed that their production is comprised of aboutEighteen operations that were carried out separately. At the same daily outputper worker amounted to 4800 pins. In the absence ofspecialization and division of labor, a worker is unlikely to be able to produceeven 20 pins in a day.The division of labor allows people to benefit from the differences in theirabilities and skills, and employers - to distribute the tasks amongworkers according to their qualifications. Only when the division of laborit is possible to use complex, requiring mass productiontechnology, unthinkable in a subsistence economy.