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The theory of comparative advantage is derived from the theory of absolute advantage, the theory of which came first. Put forward by Adam Smith in 1776 in the legendary economic treatise An Inquiry, absolute advantage theory states that every country can benefit by entering into trade with other countries because not all countries are equally endowed to produce all their economic utility. He argued that gold reserves alone are not sufficient to measure the wealth of a nation and taking the economic utilities available for its citizens. For this purpose, the country would benefit greatly if the import of goods to production that are not well disposed (in terms of resources or opportunity costs) and must export commodity that has the ability to generate a surplus.
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