Voluntary Exchange & Wealth Creation | Free Online Course

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.

Course Curriculum

Module Four: How Does Trade Create Wealth?