This discussion paper will explore the impact of intellectual property piracy on U.S. and global economies as it relates to the economic principles of opportunity cost and voluntary exchange. As we learned from our reading in chapters 13 and 18 of the Survey of Economics textbook, the authors, O'Sullivan, Sheffrin, and Perez, examine the concepts of monopolies and comparative advantage in terms of international trade and finance. And our text suggests that the world is becoming increasingly global, which creates new challenges for citizens and governments. Furthermore, our text suggests that one of the costs of being active in the international market is the compromise of intellectual property (IP). So what exactly is IP? According to the authors of the Fundamentals of Information Systems textbook, intellectual property is defined as works of the mind and provides examples such as art, books, films, music, inventions, formulas, and processes that are distinct and “owned” or created by an individual person or group. Furthermore, the authors state, intellectual property can include software and can be protected by copyright and patent laws (Stair & Reynolds, 2012, p. 419). Furthermore, the authors define software piracy as the act of unauthorized procurement through copying, downloading, sharing, selling, or installing software (Stair & Reynolds, 2012, p. 419). Furthermore, the authors of our Economics textbook state that publishers of both books and software face problems of unauthorized copying, particularly in some developing countries. While residents of these countries clearly benefit from cheaply copied books or software, producers in developed countries face little incentive to enter the paper world (…/news/articles/SB10001424052702303287804579443442002220098). Kain, Erik. (January 15, 2012). Does piracy cause economic damage? How to think about economic frontiers. Forbes Online. (http://www.forbes.com/sites/erikkain/2012/01/15/does-piracy-cause-economic-harm-how-to-think-about-economic-frontiers). O'Sullivan, A. , Sheffrin, S. M., & Perez, S. J. (2014). Survey of Economics: Principles, Applications and Tools (6th edition). United States of America: Pearson Education.Phillips, Macon. (January 14, 2012). Obama Administration Responds to We the People Petitions on SOPA and Online Piracy. The White House blog. (http://www.whitehouse.gov/blog/2012/01/14/obama-administration-responds-we-people-petitions-sopa-and-online-piracy). Stair, R., & Reynolds, G. (2012). Fundamentals of information systems. (6th edition). Boston, MA: Course Technology, Cengage Learning.