Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
The theory of comparative advantage is credited to David Ricardo.
What is Ricardo's theory of comparative advantage?
In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost than another country.
The theory of comparative advantage is attributed to political economist David Ricardo, who wrote the book Principles of Political Economy and Taxation (1817).
Comparative advantage is a key principle in international trade and forms the basis of why free trade is beneficial to countries.
Eg; Consider two countries (China and the UAE) that use labor as an input to produce two goods: wine and cloth.
In China, one hour of a worker’s labor can produce either 5 cloths or 10 wines.
In the UAE, one hour of a worker’s labor can produce either 20 cloths or 15 wines.
The UAE enjoys an absolute advantage in the production of cloth and wine.
To learn more about Comparative advantage, refer
https://brainly.com/question/4302332
#SPJ4
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.
