Economist Friedrich Hayek's prescient insights have found an exciting application in nowcasting – real-time economic forecasting using big data, writes Johan Fourie.
International trade is about people and firms buying and selling goods and services between countries. One of the main reasons it's good for economic growth is that it allows nations to specialise in what they're best at. One country might, for example, have a lot of fertile land for growing citrus, another might have a rich oil supply, and another might have highly skilled workers able to produce smartphones. By trading internationally, these countries can each focus on producing what they're best at and then trade for what they need.