|Question||Consider three periods of American history:
(a) The early 1800s, when Jones lived on an isolated farm cut off from the rest of the world;
(b) The late 1940s, when Smith lived in a country where domestic trade and exchange was extensive but international trade was cut off because of damage from World War II; and
(c) 2009, when Hall lives in a globalized world that promotes trade with all countries.
Suppose you were Jiving in each of these situations.
Describe the opportunities for specialization and division of labor of Jones, Smith, and Hall. Explain how the globalized world in (c) both allows greater productivity of Hall and allows a much greater variety of consumption goods. Give specific examples in each case.