3.2. Comparative Advantage

Quotation 1—After mastering these videos you will better understand what the former CEO of Cargill is talking about

I see Cargill as a great laboratory of both macroeconomics and microeconomics; that the good news is ... many of the things that economic theorists would tell us actually play out on the kitchen tables of individual farmers with 10-key calculators responding to signals. I think in a positive sense watching ... China make a decision to redefine their definition of food security to include importing soybeans rather than compelling land allocation within their own country, against their comparative advantage [is a good thing]
—Page, Greg [interviewee], former CEO of Cargill, the largest privately-held company in the U.S. January 12, 2015. “Greg Page on Food, Agriculture, and Cargill.” EconTalk [podcast].

(3.2) Comparative Advantage and Gains From Trade

Video 1—(3.2.a) Production Possibilities Frontier

Video 2—(3.2.b) PPFs and opportunity cost

Video 3—(3.2.c) Comparative advantage and when countries trade

Video 4—(3.2.d) Proving countries benefit from trade