The nature of trade has changed — US trade policy must change too ...Middle East

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The nature of trade has changed — US trade policy must change too
There is a good reason why trade is a sticking point as Congress considers the America Competes Act. Trade in today’s world no longer works the way it once did, but many are still being taught trade examples from an older world. They learn that if England is good at raising sheep and making their wool into cloth, and Portugal is as good at growing grapes and making their juice into wine, then, if they trade wine for cloth, they both come out ahead.    David Ricardo, who discussed this example in his famous book, understood very well what he was writing about. Ricardo originated the theory of comparative advantage and made a fortune in finance. We still use his economic reasoning today.

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