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by 9mit3t2m9h9a
3849 days ago
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There is such thing as current relative advantage; and to change what your relative advantage is, it may be useful to restrict some of the trade. Also, having ten inefficient suppliers is often better than having one very efficient monopoly — because it is usually also efficient at overcharging. If the incentives are perfectly aligned and there is a medium term success or failure to consider, relative advantage works as advertised; but this will be closer to three equal startup co-founders dividing the work in the early stages than to international trade. |
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