1-the ricardian tech table
TRANSCRIPT
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
This slide show illustrates how to determine in which commodity a country has a comparative advantage.
Using a “Ricardian” technology table which shows output per labourer, it shows that a comparison of either:
(a) opportunity costs of production between countries,
or of
(b) relative cost efficiency of a country between commodities
Both lead to the same unambiguous conclusion:
A country has a comparative advantage in the production of the commodity which its
labourers produce relatively cheaply!
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
Germán Calfat - International Trade Theory and Policy- IOB- University of Antwerp
In the next topics we shall see how…...
• A) the same conclusions can be derived using production possibility curves and indifference curves;
• B) adjustments in the international production according to comparative advantage gives rise to a net increase in total output,
• C) when taking into account a country and its population, total output will be different but comparative advantage will not be affected