Economics of Trade to benefit all folks in the world

Economists agree that free trade best serves the interests of all nations. WTO has such mission as known.

The Law of absolute advantage holds that all states can produce some goods or services more efficiently, more cheaply, and of higher quality than can other states. This may be attributable to natural or human resources, climate or other factors. Such may be applied to Sino-American economics in action. The empirical evidence in the past years has validated such law.

Such law, first postulated by Adam Smith,the professor of moral philosophy was later modified by David Ricardo in his Law of Comparative Advantage. Confucius and Mencius stressed morality and ethics in economics of trade as well.

Such law recognizes that some countries may not have an absolute advantage in many or any products, hence they should produce those goods which they produce most efficiently and then trade for their other needs ensuing the world's production of goods and services to be maximized in free trade for a higher standard of living for all folks. This rationale may be applicable to Sino-American economics as I would envision in the 21st century and beyond.

Francis Shieh a.k.a. Xie Shihao, a lifelong student of economics and languages on Wednesday, October 14, 2009 at 5.36 a.m.