Global Trade and Integration · Global Markets
Theory of Comparative Advantage
Analyzing the basis for trade and why specialization leads to mutual gains for nations.
Key Questions
- 1Why should a country trade even if it is more efficient at producing everything than its partner?
- 2What are the limitations of the comparative advantage theory in the modern world?
- 3Who loses out when a nation shifts its production focus based on global demand?
MOE Syllabus Outcomes
MOE: International Trade - JC2MOE: Theory of Comparative Advantage - JC2
Level: JC 2
Subject: Economics
Unit: Global Trade and Integration
Period: Global Markets
Suggested Methodologies
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