versions, Samsung manufactures the displays and cameras. In some ways, then, Samsung is both the biggest
450 19 • International Trade

supplier and biggest competitor for Apple. Why do these two firms work together to produce the iPhone? To

understand the economic logic behind international trade, you have to accept, as these firms do, that trade is about

mutually beneficial exchange. Samsung is one of the world’s largest electronics parts suppliers. Apple lets Samsung

focus on making the best parts, which allows Apple to concentrate on its strength—designing elegant products that

are easy to use. If each company (and by extension each country) focuses on what it does best, there will be gains

for all through trade.

We live in a global marketplace. The food on your table might include fresh fruit from Chile, cheese from

France, and bottled water from Scotland. Your wireless phone might have been made in Taiwan or Korea. The
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