Discussion week 2: People in California consume potatoes produced in Idaho and people in Idaho consume avocados produced in California. There are so many other examples of people in one region consuming products produced by firms in other regions. This pattern of behavior is called specialization and trade: Firms in California are specializing in the production of avocados and exporting part of the avocados produced to buyers in Idaho and firms in Idaho are specializing in the production of potatoes and exporting part of the potatoes produced to buyers in California. In essence, people and firms in California are specializing in the production of avocados and trading them for potatoes and people and firms in Idaho are specializing in the production of potatoes and trading them for avocados. There many other examples of this type occurring throughout our economy, without any real concerns about importing products produced by firms in other part of our economy