Economists find evidence for famous hypothesis of 'comparative advantage'

Wednesday, June 20, 2012 - 04:30 in Psychology & Sociology

David Ricardo’s concept of “comparative advantage” is one of the most famous and venerable ideas in economics. Dating to 1817, Ricardo’s proposal is that countries will specialize in making the goods they can produce most efficiently — their areas of comparative advantage — and trade for goods they make less well, rather than making all kinds of products for themselves.

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