【正文】
avid Ricardo, and other economists in the nieenth century. It points out that trade between countries can be profitable for all, even if one of the countries can produce every modity more cheaply. As long as there are minor, relative differences in the efficiency of producing a modity even the poof country can have a parative advantage in producing it. The paradox is best illustrated by this traditional example: the best lawyer in town is also the best typist in town. Since this lawyer cannot afford to give up precious time from legal and typing matters. But the typist’s parative disadvantage is least in typing. Therefore, the typist has a relative parative advantage in typing. This principle is the basis of specialization into trades and occupations. At the same time, plete specialization may never occur even when it is economically advantageous. For strategic or domestic reasons, a country may continue to produce goods for which it does not have an advantage. The benefits lf specialization may also be affecting by transport costs: goods and raw materials have to be transported around the world and the cost of the transport narrows the limits between which it will prove profitable to trade. Another impediment to the free flow of goods between nations is the possible introduction of artificial barriers to trade, such as tariffs or quotas. In addition to visible trade, which involves the import and export lf goods and merchandise, there is also invisible trade, which involves the exchange of services between nations. Nations such as Greece and Norway have large marine fleets and provide transportation service. This is a kind of invisible trade. When an exporter arranges shipment, he rents space in the cargo partment or a ship. The prudent exporter purchases insurance for his cargo’s voyage. While at sea, a cargo is vulnerable to many dangers. Thus, insurance is another service in which some nations specialize. Great Britain, because of the development of Lloyd’s of London, is a leading exporter of this service, earning fees for insuring other nations’ foreign trade. Some nations possess little in the way of exporter modities or manufactured goods, but they have a mild and sunny climate. During the winter, the Bahamas attract large numbers of countries, who spend money for hotel acmodations, meals, taxis, and so on. Tourism, therefore, is another form of invisible trade. Invisible trade can be as important to some nations as the export of raw materials or modities is to other. In both cases, the nations as the export of raw materials or modities is to other. In both cases, the nations earn money to buy necessities. International trade today little resembles European merce as it existed between the 16th century and the 19th century. Trade in earlier times was conducted largely between a mother country and its colonies. It was conducted according to strict mercantilist principles. The colonies were supposed to supply the mother country with raw materials, and they were expected to buy all finished goods from the mother country. Other forms of trade were forbidden to the colonies, but many of them evaded t