Comparative Advantage - Explained with an example

To determine who has a comparative advantage you need to calculate the opportunity cost of producing each product. This will answer the questions is who should produce what. Alas, this will determine who has a comparative advantage in a simple two economy model.
In theory trade between states is similar to trade between countries with less politics involved.
In this example we look at the production and trade of purple garlic, a Northern variety, compared with white garlic, a Southern variety.

We look at two farmers Mark and George and determine who has the comparative advantage in each product.

[Mande]

I would rather barter and give you some basil for some of your garlicl!  Great video.