Business Management 101 – Benefits of Trade

September 11, 2008

At Onsite Computer Services in New Orleans we regularly encounter Microsoft based small business clients who are oblivious to or choose to ignore the notion that computing productivity for the foreseeable future requires someone with IT expertise to manage desktops, servers, and the networks where they live.  We often run into small business owners with little IT training or experience who attempt to manage their IT operations, in addition to their businesses, in order to reduce expenses.

Onsite is a small business, also, and we fully understand the concept of minding our expenses and running a profitable business. With the exception of a small number of businesses, a firm can’t compete in a profitable manner without the productivity increases provided by technology, and technology sometimes requires management by someone with technical expertise and experience.

In 1817 the idea of comparative advantage and how trade can benefit all parties involved was explained by David Ricardo in his book On the Principles of Political Economy and Taxation.  The conclusion from this analysis is that an economic entity should specialize in products and services in which it has a comparative advantage. It should trade with other entities for products in which the other entity has a comparative advantage. In this way both entities become better off and gain from trade.

To be more specific, a small business owner who specializes in A and who also repairs his file server in his spare time would be better off specializing in A and paying a specialist to fix his file server, from an economic perspective.  You can read about comparative advantage and its economic implications by Googling the term.

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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