Comparative Advantage

So far, we’ve done a lot of discussion of macroeconomics where the economy is closed – that is, we assume all trade takes place in the country, or, in plain terms, there’s no importing and no exporting. Now, we can extend that idea into allowing international trade. The first question, though, is why would we [...]

Source: http://thebadeconomist.com/2011/04/08/comparative-advantage/

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