Trade no-think

Washington Times ^ | Tuesday, August 19, 2003 | By Paul Craig Roberts

[JohnHuang2]

Sending me many suggestions, readers have beseeched me to revive the "nothink nation" theme I developed in six columns during April and May 2002. I doubt editors have that big a stomach for the subject, but I will risk one more column.

[JohnHuang2]

Tuesday, August 19, 2003

Quote of the Day by edskid

[Tauzero]

"Traded goods must be shipped and are, therefore, less mobile than technology, capital and knowledge-based labor skills, all of which can move with the speed of modern communications."

Except, that's not true for many information goods, like software.

My own company's primary method of distribution is download via the web.

So in the case of software engineering, the opposite is true. The goods are still more mobile than the production factors, though the latter are still highly mobile.

The net has increased the mobility of both the goods and the production factors, in software.

[Tauzero]

But Roberts is correct otherwise.

If there aren't immobile (or poorly mobile) comparative advantages, then the effect of free trade is to erase absolute advantages.

[Tauzero]

ping

[Willie Green]

Previously posted: Trade nothink