Chapter three covered the reasons for Economic interdependence and the gains of trade, hence the title "Interdependence and the gains from trade". It covered key concepts such as absolute advantage and comparative advantage by applying them into a simple world where only a farmer and rancher exist. The farmer and rancher could be antisocial and never speak to each other as they each live their owns lives eating potatoes and meat. Or they could glorify their lives by trading and getting a bigger share of both potatoes and meat. But of course they just can't throw around whatever surplus they have they. There must be some sort of plan to have an efficient trading system, which luckily the rancher figured out and it includes specialization! The rancher has absolute advantage but has the comparative advantage when it comes to meat, so, simply put it, he makes the meat and the farmer makes the potatoes.
That is how the world goes round...most of the time
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