To understand comparative advantage

To understand comparative advantage, it is best to start with its simpler cousin: absolute advantage. The concept of absolute advantage simply says that if some foreign nation is a more efficient producer of some product than we are, then free trade will cause us to import that product from them, to the benefit of both nations. It benefits us because we get the product for less than it would have cost us to make it ourselves. It benefits the foreign nation because it gets a market for its goods. And it benefits the world economy as a whole because it causes production to come from the most efficient producer, maximizing world output. Sounds good. Indeed, absolute advantage is a set of fairly obvious ideas. It is, in fact, the theory of international trade most people instinctively hold, without recourse to formal economics, and thus it explains a large part of public opinion on the subject. It sounds like a reassuringly direct application of basic capitalist principles. It is the theory of trade the great Adam Smith himself, founder of modern economics.It is also false. Under free trade, America observably imports products of which we are the most efficient producer—which makes no sense by the standard of absolute advantage. This causes complaints like conservative commentator Patrick Buchanan’s below:

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it benefits us because we get the product for less than it would have cost us to make it ourselves. it benefits the foreign nation because it gets a market for its goods. and it benefits the world economy as a whole because it causes production to come from the most efficient producer, maximizing world output. sounds good. indeed, absolute advantage is a set of fairly obvious ideas. it is,.in fact, the theory of international trade most people instinctively hold, without recourse to formal economics, and thus it explains a large part of public opinion on the subject. it sounds like a reassuringly direct application of basic capitalist principles. it is the theory of trade the great adam smith himself, founder of modern economics.it is also false. under free trade,.america observably imports products of which we are the most efficient producer-which makes no sense by the standard of absolute advantage. this causes complaints like conservative commentator patrick buchanan's below:.

ผลลัพธ์ (อังกฤษ) 3:

To understand comparative advantage, it is best to start with its simpler cousin: absolute advantage.The concept of absolute advantage simply says that if some foreign nation is a more efficient producer of some product than we are, then free trade will cause us to import that product from them, to the benefit of both nations.It benefits us because we get the product for less than it would have cost us to make it ourselves. It benefits the foreign nation because it gets a market for its goods. And it benefits the world economy as a whole because it causes production to come from the most efficient producer, maximizing output world. Sounds good. Indeed, absolute advantage is a set of fairly obvious ideas. It is,In fact, the theory of international trade most people instinctively hold, without recourse to formal economics, and thus it explains a large part of public opinion on the subject. It reassuringly sounds like a direct application of basic capitalist principles. It is the theory of the great trade Adam Smith himself, founder of modern economics.It is also false.Under Free Trade,observably America imports of products which we are the most efficient producer - which makes no sense by the standard of absolute advantage.This causes complaints like conservative commentator Patrick Buchanan' s below: