i think after the absolute/comparative advantage lesson, i've gained a new insight on how the contries trade with each other and what forces lead them to know which countries to trade with. one country may have a higher production in a certain product, however, if compared the production and the opportunity cost of the production, there could be a difference and breakthrough in knowing which countries to trade with. the lower the opportunity cost the better. and some countries/ most countries seek for advantages and benefits in the trade. and this is how they determine how and to whom to trade with. the comparative advantage formula and calculation may be confusing at first, but once you understand the concept, its not hard, even if u forget the formula, to figure the numbers out.

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The question asked by agoldman will probably become true as China catches up to the West in terms of technology and more and more workers are left without jobs. Because so little Chinese get a decent education, more and more people are going to be jobless which in turn will keep much of China in poverty. China will need to find ways of preventing this trend. A couple ways would be for the government to boost education policies around the country and also to make sure the new technology they use will not take away jobs. New technology such as wi-fi would be ideal but new machinery would not be because of the huge numbers of workers that would be displaced. Once less and less people depend on actual hard labor (building, agricultural) because of better educated people could the government implement machines that are more efficient and faster than humans.

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