Division Of Labor Without Trade Research Paper

323 Words2 Pages
Why would division of labor without trade not work? To survive, the division of labor requires trade because if laborers couldn't use their gains to acquire the goods and services that they need or want, then they would be no reason for them to continue in their place of employment. Things would then most likely revert to bartering. That is the direct exchange of goods or services produced by an individual for the goods or services produced by another individual. In other words, if a farmer needs furs he has to find trapper who needs fresh produce. They then have to come to an agreement about how much fresh produce the required furs are worth. So, clearly without trade, the division of labor could not exist.