comparative advantage l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Comparative Advantage PowerPoint Presentation
Download Presentation
Comparative Advantage

Loading in 2 Seconds...

play fullscreen
1 / 14

Comparative Advantage - PowerPoint PPT Presentation


  • 214 Views
  • Uploaded on

Comparative Advantage. Chapter 2. Economic Principle. Trade between two parties makes both better off. What’s the alternative to trade?. David Thoreau at Walden Pond. On a national level: autarky. A policy of national self-sufficiency and nonreliance on imports or economic aid. .

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Comparative Advantage' - albert


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
comparative advantage

Comparative Advantage

Chapter 2

ECON201, Maclachlan, Fall 2005

economic principle
Economic Principle

Trade between two parties makes both better off.

ECON201, Maclachlan, Fall 2005

what s the alternative to trade
What’s the alternative to trade?

David Thoreau

at Walden Pond.

ECON201, Maclachlan, Fall 2005

on a national level autarky
On a national level: autarky

A policy of national self-sufficiency and nonreliance on imports or economic aid.

ECON201, Maclachlan, Fall 2005

mercantilism
Mercantilism

A country should aim to run trade surpluses and increase its monetary assets.

ECON201, Maclachlan, Fall 2005

adam smith 1723 1790
Adam Smith (1723-1790)

Critic of mercantilism.

Countries should specialize and trade.

Specialize where there’s an ABSOLUTE ADVANTAGE

ECON201, Maclachlan, Fall 2005

absolute advantage
ABSOLUTE ADVANTAGE

A region has an absolute advantage if it takes fewer resources to produce a good there than elsewhere.

Coffee in Columbia.

Computer software in Silicon Valley.

ECON201, Maclachlan, Fall 2005

david ricardo 1772 1823
David Ricardo (1772-1823)

Theory of comparative advantage.

Even without an absolute advantage a region can trade to the benefit of all parties.

ECON201, Maclachlan, Fall 2005

productivity information
Productivity Information

ECON201, Maclachlan, Fall 2005

productivity and opportunity cost
Productivity and Opportunity Cost

ECON201, Maclachlan, Fall 2005

productivity and opportunity cost11
Productivity and Opportunity Cost

ECON201, Maclachlan, Fall 2005

productivity and opportunity cost12
Productivity and Opportunity Cost

ECON201, Maclachlan, Fall 2005

johnnie cochran
Johnnie Cochran

Should he prepare his own will?

ECON201, Maclachlan, Fall 2005

why some countries have been slow to specialize
Why some countries have been slow to specialize

In the lone houses and very small villages which are scattered about in so desert a country as the Highlands of Scotland, every farmer must be butcher, baker and brewer for his own family.

--Adam Smith, 1776

ECON201, Maclachlan, Fall 2005