International Economics. Chapter 2 The Law of Comparative Advantage. Organization. 2.1 Introduction 2.2 The Mercantilists\' View on Trade 2.3 Trade Based on Absolute Advantage: Adam Smith 2.4 Trade Based on Comparative Advantage: David Ricardo2.5 Comparative Advantage and Opportunity Costs2.6 The Basis for and the Gains from Trade Under Constant Costs2.7 Empirical Tests of the Ricardian ModelChapter SummaryExercises.
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