14. Increased trade with the rest of the world and investments in physical capital, education, and technology are the keys to increased productivity a

14. Increased trade with the rest of the world and investments in physical capital, education, and technology are the keys to increased productivity and economic growth. Trade creates wealth by allowing specialization. When people specialize in activities they do relatively well, they are able to produce more. Productivity also can be increased by investment in physical capital, human capital, and technology.

Countries that devote more economic resources to investment can expect more economic growth and a larger improvement in the standard of living than countries that invest fewer resources. Module 6 is devoted to explaining economic growth.