4 ms·
Comparative advantage never made any sense. It's a model of a world without technology, without supply chains, without increasing returns to scale, and only two
by viburnum 6y ago
Comparative advantage never made any sense. It's a model of a world without technology, without supply chains, without increasing returns to scale, and only two countries.
- whatshisface 6y agoYou sort of had me until the last claim (no more than two countries), I know for a fact their models are more advanced than that. Any actual economist care to chime in and explain comparative advantage?
- icemelt8 6y agoThis is an amazing article, which provides both views https://www.investopedia.com/terms/c/comparativeadvantage.asp https://www.investopedia.com/terms/c/comparativeadvantage.as...
- beefman 6y agoThere are models with more than two countries, but no consensus on which to use. Most economists couldn't name one of these models, or anyone who has ever studied the question.