The Mighty Difference Between Immigration and Trade

What’s so great about international trade?  Economist’s standard answer boils down to two words: comparative advantage.  Specialization and trade increases total production, even if one side is more productive across the board.  A textbook example starts with a table that shows hourly productivity in two countries, such as the U.S. and Mexico.

Table 1: Trade and Productivity

U.S. Productivity Mexican Productivity Cars/Hour 4 .1 Wheat/Hour 2 1

To see how specialization and trade rai...