3 ms·
the example isn't helpful because of [...] 1) The unexplained reason why Xia can produce food so cheaply. No explanation is needed. http://en.wikipedia.org/wi
by gravitycop 18y ago
the example isn't helpful because of [...] 1) The unexplained reason why Xia can produce food so cheaply.
No explanation is needed.
http://en.wikipedia.org/wiki/Absolute_advantage http://en.wikipedia.org/wiki/Absolute_advantage
http://en.wikipedia.org/wiki/Comparative_advantage http://en.wikipedia.org/wiki/Comparative_advantage
- cmac 18y agoWell, I think an explanation in real-world terms is needed, not theoretical definitions. For example: 1) Does Xia have better climatic conditions? If so, why wouldn't neighbouring countries have similar conditions to become a viable competitor? 2) Do the have better packing and transportation technology? If so, why can't another country develop/buy/steal the technology? 3) Etc, etc. Hence, my point is that the imposed constraints may not normally exist.
- gravitycop 18y agoInterestingly, substituting gas for food, this very scenario is playing out while we speak. http://news.google.com/news?q=ukraine+gas+crisis http://news.google.com/news?q=ukraine+gas+crisis