Comparative Advantage in International Trade
In international trade countries usually have comparative advantage in different industries and for different reasons. Comparative advantage allows for gains from international trade. Outline 2 1 Introduction 2 2 The Mercantilists Views On Trade Comparative Advantage Economics Labor Theory Of Value Section 2 presents a simple two-country two-sector model of comparative advantage in trade and endogenous fertility. . Ricardo considered what goods and services. The Heckscher-Ohlin HO factor propor tions theory derives the determinants of comparative advantage in a world of two-ness two goods two factors two countries. During the 20th century international economists offered a number of theories in an effort to explain why countries have differences in productivity the factor that determines comparative. Absolute advantage suggested that such a country might derive no benefit from international trade. Subsequently the global e...