Course Description

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

Course curriculum

  • 1

    Module Four: How Does Trade Create Wealth?

    • Overview

    • Additional Resources

    • Concepts and Terms

    • Objectives

  • 2

    Lesson One: Gains From Trade

    • 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

  • 3

    Lesson Two: Why We Exchange

    • 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

  • 4

    Lesson Three: Division of Labor and Specialization

    • 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

  • 5

    Lesson Four: Competition as Cooperation

    • 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

  • 6

    Lesson Five: Economic Freedom and Prosperity

    • 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