ABSTRACT
The World Bank stated in 2016 that aging and digitization are driving an expansion of international trade in services. Adam Smith presents the argument for free trade based on different countries having an absolute advantage in production of different products. In Smith's view, specialization at the national level would lead each country to become so efficient in the production of some things that it would enjoy an absolute advantage over other countries in their production. Organizations seek gains from trade when they specialize in a particular area — say, production of training workshops — while contracting with other companies to provide support services — say transportation or advertising design. Vulnerability is a serious issue for countries that rely heavily on sales of a single, or a few, export goods for much of their national income. Globalization involves increasing trade and communications among all parts of the world, leading to a great increase in the volume of traded goods and services.
