Discuss why Ricardo’s cost comparative theory explains better than Smith’s Absol
ID: 1200906 • Letter: D
Question
Discuss why Ricardo’s cost comparative theory explains better than Smith’s Absolute Advantage the current trade pattern between the developing and developed countries Discuss why Ricardo’s cost comparative theory explains better than Smith’s Absolute Advantage the current trade pattern between the developing and developed countries Discuss why Ricardo’s cost comparative theory explains better than Smith’s Absolute Advantage the current trade pattern between the developing and developed countriesExplanation / Answer
Ricardo’s cost comparative theory explains better than Smith’s Absolute Advantage the current trade pattern between the developing and developed countries because it is possible for a country to have an absolute advantage in nothing, while a country will have a comparitive advantage in the production of one good when it is trading with the other country. Ricardo's thoery generates a hope in the technologically backward countries that they can also have a comparative advantage in production of good and develop through international trade.
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.