A note from Daniel

Specialization goes hand in hand with trade; the two create a feedback loop. Eric D. Beinhocker writes that "one of the great benefits of trade is that it enables specialization" — you can't specialize if you can't trade for the other things you need but don't produce. Specialization, in turn, reinforces trade: once you specialize, you can produce goods that you don't need for yourself, making them available for trade.

Daniel The Great Mental Models, Volume 4, page 81 · December 18, 2024 Save to shelf
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