Chapter 12: Trade and Globalization

Trade is good. Trade is efficient (when countries specialize in what they're best at - or least worst at). Wheelan summarizes the basic idea of globalization, "Productivity is what makes us rich. Specialization is what makes us productive. Trade allows us o specialize"(275). Yes, it's from end product to starting point, but he gets his point across. Without one, you could not have the others. Another point Wheelan  brings up is that countries do not trade with enemy countries. For example, we do not trade with Cuba. True, one can still purchase Cuban cigars on the black market (shame! Now that transaction will not be counted in GDP. Sigh.), but nothing is sold on the white market in the open. No Coca Cola in Cuba! Obviously the issues between Cuba and the United States are much deeper than "I don't like you, so I'm not gonna share me toys with you" (or in this case, goods and/or services), but it does not change the fact that trade does not occur between the two countries. Cutting off trade with another country is supposed to cause it to go into an economic slide or recession. While the economy is not the best *cough cough* in either country, both still benefit from trade with other various countries. Allies are good to have if a country is not able to produce all necessary goods and services. In other words, can you imagine waking up every morning hoping that your chicken laid your breakfast? How fun would that be?