Any economic force of that size, even if it confers overall benefits, is certain to cause disruption and

controversy. This chapter has only made the case that trade brings economic benefits. Other chapters discuss,

in detail, the public policy arguments over whether to restrict international trade.

BRING IT HOME

Just Whose iPhone Is It?
Apple Corporation uses a global platform to produce the iPhone. Now that you understand the concept of

comparative advantage, you can see why the engineering and design of the iPhone is done in the United States. The

United States has built up a comparative advantage over the years in designing and marketing products, and

sacrifices fewer resources to design high-tech devices relative to other countries. China has a comparative

advantage in assembling the phone due to its large skilled labor force. Korea has a comparative advantage in

producing components. Korea focuses its production by increasing its scale, learning better ways to produce
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