Challenging Comparative Advantage Essay 1410 Words | 6 Pages. Comparative advantage is a principle developed by David Ricardo in the early 19th century to explain the benefits of mutual trade (Carbaugh, 2008). Many underlying assumptions of comparative advantage depend on states of economic equilibrium and an absence of economy of scale.
Other Question and Answers that can be helpful for you
1. What is a comparative advantage?
What is a Comparative Advantage? In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost
2. What is the main purpose of a comparative essay?
The main purpose of the comparative essay is to: Highlight the similarities and differences in a systematic manner. Provide great clarity of the subject to the readers. Analyze two things and describe their advantages and drawbacks. A comparative essay is also known as compare and contrast essay or a comparison essay.
3. What is the basis for comparison in an essay?
The basis for comparison is the ground for you to compare the subjects. In most cases, it is assigned to you, so check your assignment or prompt. Furthermore, the main goal of the comparison essay is to inform the reader of something interesting. It means that your subject must be unique to make your argument interesting.
4. What is a major weakness of the comparative advantage model?
One major weakness of the comparative advantage model is that it cannot explain as to why a rising fraction of world trade is taking place among Western developed nations.