Find
Search for over 100,000 study notes and past assignments!
Swap
Download study resources by swapping your own or buying Exchange Credits.
Study
Study from your library anywhere, anytime.
Does the theory of comparative advantage make a convincing case for free trade?
ECOP1003 - International Economy and Finance
4 Pages • Essays / Projects • Year: Pre-2020
In the Principles of Political Economy and Taxation wrote by David Ricardo in 1817, it emphasises that the key of international trade is comparative advantage, where a country has the ability to produce products at a lower opportunity cost than other countries, which means that they are relatively more efficient at producing that products. Later scholar Ricardo further advanced his idea with the reasoning that if one country specialises in producing products that are most efficient and engage in trade with other trading partners that are also producing their most efficient products, then both countries will be better off. The idea of comparative advantage points out reasons for free trade but there are a number of significant limitations in its real practice. This essay will look at some of the limitations such as demand, specialisation and perfect competition and explore why some countries still support free trade by the idea of comparative advantage.
This document is 20 Exchange Credits
More about this document:
|
|
This document has been hand checkedEvery document on Thinkswap has been carefully hand checked to make sure it's correctly described and categorised. No more browsing through piles of irrelevant study resources. |
|
|
This is an Essay / ProjectEssays / Projects are typically greater than 5 pages in length and are assessments that have been previously submitted by a student for academic grading. |
|
|
What are Exchange Credits?Exchange Credits represent the worth of each document on Thinkswap. In exchange for uploading documents you will receive Exchange Credits. These credits can then be used to download other documents for free. |
|
|
Satisfaction GuaranteeWe want you to be satisfied with your learning, that’s why all documents on Thinkswap are covered by our Satisfaction Guarantee. If a document is not of an acceptable quality or the document was incorrectly described or categorised, we will provide a full refund of Exchange Credits so that you can get another document. For more information please read Thinkswap's Satisfaction Guarantee. |
Studying with Academic Integrity
Studying from past student work is an amazing way to learn and research, however you must always act with academic integrity.
This document is the prior work of another student. Thinkswap has partnered with Turnitin to ensure students cannot copy directly from our resources. Understand how to responsibly use this work by visiting ‘Using Thinkswap resources correctly’.
Browse USYD Subjects
