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> Asia has a comparative advantage because labor is much cheaper there. You started the sentence with comparative advantage then transitioned smoothly to an ab
by roenxi 2y ago
> Asia has a comparative advantage because labor is much cheaper there.
You started the sentence with comparative advantage then transitioned smoothly to an absolute advantage - if you want to see low wages, look to Africa. Relative wage levels doesn't determine directly cause comparative advantages. I also note you're also implicitly disagreeing with the article and suggesting that compensation gap is not a myth.