Handout: Athletic Footware Value Chain
Handout: Comparative Advantage; Micro Trade Market Failures

Handout: Trade and the Division of Labor

Handout: Trade and the Division of Labor

J. Bradford DeLong
U.C. Berkeley
January 16, 2006

  • Examples of the division of labor
    • Within Berkeley
    • Beyond Berkeley but within California
    • Beyond California but within the United States
    • Beyond the United States
  • Importance of the division of labor
    • Allowing for the application of skill-intensive production processes
    • Allowing for the application of capital-intensive production processes
    • Allowing for the application of technology-intensive production processes
    • Providing incentives:
      • For investment in skills
      • For investment in capital--saving
      • For investment in technology--research and development
  • How important is the division of labor beyond the United States?
    • Intra-industry trade: narrow specialization
    • Intra-industry trade: competition
      • As spur to efficiency
      • As reducer of profit margins
    • Trade based on factors of production
      • Resources as a source of trade
      • Wealth as a source of trade
      • Poverty as a source of trade
    • Comparative advantage

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