Explain david ricardos theory of comparative advantage

Reference no: EM131261148

ASSESSMENT

Question 1

Explain David Ricardo's theory of comparative advantage. How does comparative advantage differ from absolute advantage? What is the relationship between comparative advantage and gains from trade?

Question 2

Explain the theory of external economies and their resulting impact upon international imports and exports. What are some underlying assumptions behind this theory and why are these assumptions important in international trade?

Reference no: EM131261148

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