The law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage. Comparative advantage is the economic reality describing the work gains from trade for individuals, firms or nations, which arise from differences in their factor endowments or technological progress. In an economic model, agents have a comparative advantage over others in producing a particular good if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade. One does not compare the monetary costs of production or even the resource costs (labor needed per unit of output) of production. Instead, one must compare the opportunity costs of producing goods across countries.
Criticizes Commerce Secretary Wilbur Ross for his comments about the Korea-U.S. Free Trade Agreement, showing he "forgets some basic lessons of international trade"
Comments on a Paul Craig Roberts and Charles Schumer article arguing against free trade, introducing first the law of comparative advantage
After providing a numerical example of the law of comparative advantage, defends it from the argument that movable factors of production make the law no longer applicable
Describes several of Mises' contributions to economics theory and other areas, along with some personal reminiscences
Chapter 8 "Human Society", section 4; discusses how all people benefit when they cooperate with each other and how the division of labor results in greater productivity
The introductory paragraph uses material from the Wikipedia article "Comparative advantage" as of 18 Nov 2018, which is released under the Creative Commons Attribution-Share-Alike License 3.0.