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File: Production Pdf 129715 | 99999112
1 Ricardian theory of Comparative Advantage: The classical theory of international trade is popularly known as the Theory of Comparative Costs or Advantage. It was formulated by David Ricardo in ...

icon picture PDF Filetype PDF | Posted on 02 Jan 2023 | 2 years ago

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...Ricardian theory of comparative advantage the classical international trade is popularly known as costs or it was formulated by david ricardo in his principles political economy and taxation approach terms cost presented basically seeks to explain how why countries gain trading idea drawn view deficiencies observed adam smith s absolute explaining territorial specialisation a basis for being dissatisfied with application labour value case foreign developed under thought that country tends specialise export those commodities production which has maximum minimum disadvantage similarly imports will be goods having relatively less greater constructed two commodity but one factor model following assumptions only productive are measured units involved perfectly mobile within immobile internationally homogeneous there unrestricted free constant returns scale full employment equilibrium perfect competition these let us assume x y produced now illustrate elucidate difference take some hypotheti...
								

							

						
	
												
				
					
					
					
			
					
				
				
		
	

	
		





	

	
				

						

						
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Posted on: 02 Jan 2023 | 2 years ago
										
										
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