International Trade – THE IOWA CAR CROP

Steven Landsburg, The Armchair Economist
THE IOWA CAR CROP

http://www.walkerd.people.cofc.edu/Readings/Trade/iowacarcrop.pdf

“International trade is nothing but a form of technology. The fact that there is a place called Japan, with people and factories, is quite irrelevant to Americans’ well-being. To analyze trade policies, we might as well assume that Japan is a giant machine with mysterious inner workings that convert wheat into cars.”