How Does Trade Create Wealth?
Economics of Entrepreneurship Series Module 4
Module 4: How Does Trade Create Wealth?
It is still commonly believed that for exchange to occur the goods exchanged must be of equivalent value. Some other people believe the only way for a person to gain from a trade is if someone else is made worse off. However, voluntary exchange only occurs when both people believe they will benefit from the trade. This is correctly seen as an increase in wealth for all parties. This series of lessons focuses on the gains from trade as the net wealth creation that results from individuals entering into voluntary trade. By engaging in specialization and trade, entrepreneurs are able to create far more value for themselves and society than if they were to work in isolation. Economic freedom is a key ingredient for economic and social progress. Students will learn how trade not only creates material wealth but also tends to promote cooperation, peace, and harmony among people.
FEE Courses
Overview
Additional Resources
Concepts and Terms
Objectives
Introduction
Read Article
Zack Greinke trade is a "win, win” by CNN
Watch Video
Trading Game Group Activity
Watch Video: Win, Win: A Trading Game Activity
Think and Reflect
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
Watch Video: Why do we Exchange Things? by LearnLiberty
Think and Reflect
Read Article
Foreigners are Our Friends by Learn Liberty
Watch Video
Think and Reflect
Activity: It's Valuable to Me!
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
Specialization and Trade by Learn Liberty
Watch Video
Think and Reflect
"Trade is Made of Win" Part 1: Wealth Creation by Learn Liberty
Watch Video
Think and Reflect
Comparative Advantage
Read Article
Think and Reflect
Read Article: Treasure Island: Part 1
Read Article: Treasure Island: Part 2
Think and Reflect
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
"Trade is Made of Win"; Part 2: Cooperation
Watch Video
Think and Reflect
Competition and Cooperation by Steven Horwitz
Read Article
Think and Reflect
Competition is Cooperation by Sheldon Richman
Read Article
Think and Reflect
Materials: Picturing the Process to Make a Pencil (from the Economics in One Day course)
Activity: Picturing the Process to Make a Pencil (from the Economics in One Day course)
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
"What's So Great About Economic Freedom?" by Learn Liberty
Watch Video
Think and Reflect
The Decline in Economic Freedom by James D. Gwartney
Read Article
Think and Reflect
"Economic Freedom in 60 Seconds" & "2015 Index of Economic Freedom"
Watch Video: "Economic Freedom in 60 Seconds"
Index of Economic Freedom Overview
2017 Index of Economic Freedom—Heritage Foundation
Lesson Quiz
Knowledge Recap
Bonus Material
Module 4 Badge