Comparative And Absolute Advantage

Comparative And Absolute Advantage

Comparative And Absolute Advantage

1. Is there a basis for international trade? Why? Use your own numbers to explain why the theory of Absolute Advantage is different from the theory of Comparative Advantage. Explain the basis of efficiency in Absolute Advantage and summarize the relationship between the concept of value and efficiency as far as the theory of Absolute Advantage is concerned.

Comparative advantage as a framework for international trade is almost axiomatic to economists. Based on the benefits of international trade, based on the idea that the opportunity costs of production in different countries. In ...