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Comparative 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
by Starman_Jones 5mo ago
Comparative 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 5mo 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 5mo 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?