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Comparative advantage theory also ignores that efficiency increases as you invest in an industry, and the acquired expertise helps related industries. It espec
by MikeUt 5y ago
Comparative advantage theory also ignores that efficiency increases as you invest in an industry, and the acquired expertise helps related industries.
It especially ignores how another country can also buy/"partner" with your companies, and export their expertise to help their own companies, and harm yours.
A simplistic model that ignores a wide variety of behavior economic and political actors can and do engage in, yet that didn't stop economists from swearing up and down that there's nothing to worry about.