Friday, February 16, 2007

How To Make A Homemade Sled

free trade, comparative advantages

prevented a story about a war ...
Once there were two small nations . Both were living on their own, without much of each other to take notice. The one we call it the sailors lived on the coast, near a river mouth and were very familiar with fishing. The others were very experienced farmers and lived in the interior. They lived by the cultivation and to understand good bread baking. The fishermen were able to also, and indeed at least as good. The grain production on the coast was even more productive than in the interior, because it never was a lack of water. The farmers also fish caught, but there were only freshwater fish in its rivers.


mosaic with bread and fish in the Byzantine
loaves Church in Tabgha lake Genezaret

The sailors caught in a week 6000 fish and baked 3000 Bread. The farmers caught only 500 fish, baked bread but at least 2000. Because so many children were born, which was generally not enough to make all tired, so that the Board of Governors met and after a Way out was looking for. Some young warriors have suggested arming itself with weapons to attack the sailors, and stealing the missing food. The wealth of the sailors was almost legendary. Others expressed concerns that they were very well armed, and many victims would call for a campaign.
The highest representative of the farmers asked for silence and finally said,
"I have a much better idea than to go to war. Let us talk to the sailors and they make the following offer to a deal with one another: We are the growers had to refrain entirely on fishing and just bake bread. We can bake bread in a week 4000. If their bread instead of 3000 bakes only 2000, so you can catch 8000 fish in a week. In addition, You may also fish in our rivers. This gives more variety to your menu, because in ur fish swim rivers, which still does not know her. We
bread cost in 2000 so far 500 fish for a fish, we have to give up four loaves. If you give us for 1000 loaves 500 fish, we are very pleased because a fish will only cost us two loaves of bread and not four as before. And you also have an advantage of them sailors, although your better fish and bread as we can. Counted once for ... In 3000 bread cost you 6000 fish for a fish you have to do without so on half a loaf. Fish are with you so cheaper. In the exchange, I propose to you the bread you get 1000 for 500 fish, or 2 loaves for one fish and not just half. A really good deal for you too! When we complete this trade, then you have fish after 7500, instead of 6000 and 3000 loaves of bread still as before. In contrast, we can then eat 500 fish in a week, also as before, but we have 3000 instead of 2000 breads. So our two peoples would be served with this trade. . So I will speak to the mariners' He turned to the young warriors and went on: "If we submit this proposal to the sailors, and these will certainly agree, we will finally enough, without which we have to fight a war with numerous victims. "
agreed to the Supreme Council of the peasant people and sent a messenger with a trade offer to the seafarers. This could ask not for long, because they immediately saw the benefits they would derive from this trade. As soon as a trade agreement was reached and was out of the new compound of the sailors and the farmers of the time people with a friendship. No one thought of war.

the same thing again soon:

Before trading
sailors 6000 fish and 3000 loaves a week
a loaf of bread costs 2 fish, 1 fish costs half bread
salt water fish and a few freshwater fish from the river mouth

farmers 500 fish and 2,000 loaves a week
1 bread : 1 / 4 fish, 1 fish costs 4 loaves
only freshwater fish

Farmers specialize in bread that is cheaper for them and the sailors on the cheaper fish trade with them. 2 loaves for 1 fish. The sailors to sell the 500 fish farmers for 1000 loaves (1 fish costs 2 loaves of bread and 1 half fish), and limiting their production to 2,000 loaves of bread, but 8000 catch fish. The farmers do without entirely on their own fishing, but as it can bake 400 loaves a week. After seeing both trading partners as better

After trade
sailors 7500 fish and 3000 loaves a week in profit in 1500
fish!

farmers 500 fish and 3,000 loaves a week in profit in 1000
bread!

Both nations now have salt water and fresh water fish on the menu.


This little story will the principle of comparative advantage illustrate, discovered by the Englishman David Ricardo, in addition to Adam Smith of the founders of classical economics
is counted.


David Ricardo (1772-1823)

trading on a voluntary basis usually brings mutual benefit. Foreign competitors to be hazardous to prosperity partners with whom we can work together to achieve greater prosperity.

Jens Christian Heuer

Sources:
David Ricardo
( http://de.wikipedia.org/wiki/David_Ricardo )
loaves Church in Tagba ( http: / / www.tabgha.net / index.html )

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