As another addition to this critical point—resilience as a theme is not even considered in these scenarios of comparative advantage. So as others have pointed out, as long as it’s steady state, this works. But how long does this remain steady state in the real world? And at some point, it’s really really beneficial to not ‘forget’ how to harvest bananas or coconuts..
As another addition to this critical point—resilience as a theme is not even considered in these scenarios of comparative advantage. So as others have pointed out, as long as it’s steady state, this works. But how long does this remain steady state in the real world? And at some point, it’s really really beneficial to not ‘forget’ how to harvest bananas or coconuts..