Essays on Comparative Advantage

Globalization is a process fueled by, and resulting in, increasing cross-border flows of goods, services, money, people, information, and culture (Held et al. 1999:16). Stephen Kobrin (1997:147-148) describes globalization as driven not by foreign trade and investment but by increasing technological scale and information flows....

Comparative advantage Beside absolute advantage, comparative advantage is another concept that everyone should know well since it plays an important role in trade. Comparative advantage is the ability of an individual, a firm or a country to produce a good or service at a lower...

One of the Ricardo’s view of the future market economy in the long term was the theory of comparative advantage. He introduced this theory in his book entitled the ‘Principles of Political Economy and Taxation’. This theory claimed the benefit of international trade could be...