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I said "but people don't do that because there are better alternatives". I also said "with monograms" for example, i.e. there are irl handmade sweaters made to
by fsckboy 4mo ago
I said "but people don't do that because there are better alternatives".
I also said "with monograms" for example, i.e. there are irl handmade sweaters made today because people don't necessarily want a factory product.
I pointed it out because it illustrates a hint of the principles of "comparative advantage" which concepts are useful for analyzing more than international trade, analysis the majority of people aren't familiar with.
- Starman_Jones 4mo agoComparative advantage falls flat on its face in the circumstances being described, though. It’s based on an assumption of opportunity cost that no longer holds true.
- fsckboy 4mo agothe principle of comparative advantage does not ever fall flat on it's face. An entire country can be worse at manufacturing/growing everything compared to the US, but they can still manufacture and grow things, and engage in trade. an individual can be inferior to other individuals at every single job skill, but can still get a job and live a full life with family. you don't know what you are talking about, at all.
- Starman_Jones 4mo agoYes, that is a description of comparative advantage. You must ask yourself this, though: why can a country be worse at manufacturing/growing yet still trade with the US? The answer is, of course, opportunity cost, as I said above. And, as above, then you must ask yourself what would happen to comparative advantage if there were no opportunity cost?