Paul Krugman choosen for Nobel(Economics) for Trade Analysis Theory

Just the other day i was going through paper and suddenly was drawn to the news of " Paul Krugman : One of the most Syndicated Liberal Columnist who got Nobel (Economics) for Trade Analysis Theory" And when i went through his theory it dumbfounded me...so simple it appears yet so complex. so i thought of reflecting some of my thoughts on this great man's theory.

The Much deserved US .Economist Paul Krugman, a prolific (intellectually productive) columnist and fierce critic of Washington’s economic policies, won the Nobel Prize on Monday.

Mr. Krigman (55), a Princeton university professor has formulated a new trade analysys theory, which determines the effects of free trade and globalization, as well as the driving forces behind worldwide urbanization said the citation.
The Nobel economics prize has been especially closely watched this year owing to the ongoing global financial crisis.
The Nobel committee hailed Mr. krugman for his approach based on “The premise that many goods and services can be produced mere cheaply in long series, a concept generally known as economics of scale” .
His theory shows that globalization tends to increase the pressure on urban living because specialization sucks people into these centers of concentration through processes that can result in “Regions become divided into a high technology urbanized core and a less developed ‘periphery’” .
Traditional theory assumes the differences between the countries explain why some nations export agricultural products while others export industrial goods. Such process holds out the possibility that some countries can improve their situation via a process of complementarity (The interrelation of reciprocity whereby one thing supplements or depends on the other).
But Mr.Krugmans theory clarifies why world-wide trade is , in fact , dominated by countries which not only have similar conditions but also trade in similar products” eg:Countries such as swedon that imports and exports cars.
His theory helps to explain that globalization tends towards concentration, both in terms of what a manufacturing base makes and where it is located. This kind of trade enables in specialization and large scale production, which results in lower prices and a greater diversity of commodities. Mr. Krugman is also author of dozens of books and several articles primarily about international trade and global finance and is known for creating the “New economic geography”.