The Theory of Comparative Advantage
A very counter-intuitve concept. But very essential to appreciate International trade.
Just answer this question before you read the article :
"There are two countries A and B. And two products X and Y. Assume there are no other countries and no other products. If A is better in producing both X and Y, will it be beneficial for A to do trade with B ?"
Friday, December 24, 2004
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