Critically discuss the Ricardian theory of Comparative Advantage. How is it different from Adam Smith’s theory of Absolute Advantage?
Introduction International trade has long been analyzed through classical economic theories, and two of the most influential among them are the Ricardian theory of Comparative Advantage and Adam Smith’s theory of Absolute Advantage. These theories explain the reasons behind trade between countries and how they can benefit from specialization and exchange. Although both support free […]