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Especially since Ricardo's competitive advantage ends up being a disadvantage 95% of the time.
I'm not sure what you are talking about. The idea of competitive advantage implies that ALL countries can gain from trade. Even if you lived in a country that wasn't good at making ANYTHING, you still have a competitive advantage in something. Because competive advantage, as opposed to absolute advantage is based off the slope of your production possibilities frontier, rather than the intercepts.
So if 1 country has a steeper slop, (meaning they are relatively better at producing good Y over good X), then the other nation by definition has a lower opportunity cost of producing good X.
So even if the richer or more productive country, in absolute terms is better at making both goods, he still benefits from specializing in good Y and then buying good X from the other country. That maximizes his consumption. The same is true for the smaller country.
Wikipedia has a nice little article on it:
excerpt:
"Comparative advantage explains how trade can create value for both parties even when one can produce all goods at lower prices than the other. The net benefits of such an outcome are called gains from trade."
source: http://en.wikipedia.org/wiki/Comparative_advantage
I'm not sure where you got the 95% you mentioned.
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On September 27 2008 08:20 Last Romantic wrote:Show nested quote +On September 27 2008 08:15 fusionsdf wrote:On September 27 2008 07:48 Flaccid wrote:On September 27 2008 06:42 Savio wrote:
a bunch of stuff about trade And then there was a leaked conversation between Obama and (I believe) a Canadian minister where he stated that he wasn't actually serious about doing anything with NAFTA. Good ol' political posturing. god fuck ctv fuck them so hard for good or for bad, no one from obama's camp said that to the canadian embassy someone from clinton's campaign did, and somehow in the inept reporting of ctv that morphed to obama regardless, i hope nothing happens to nafta.
So do I.
Did you know that Canada is our #1 trade partner? We trade more with Canada than with China or any other country. Mexico is up there too. I think it makes our continent more unified. Even though our governments may have way different values/leanings, we all know we are allies and trade partners.
In fact its not even close. Canada is WAY ahead of China.
http://www.census.gov/foreign-trade/top/dst/2007/12/balance.html
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United States22883 Posts
Because their advantage gets exploited by free trade agreements. Their self-sustainability disappears as they specialize and they then become dependent on other countries for resources, while the few items they're invested in quickly drop in value. Seriously, where did you study economics at? Free trade agreements forced by the World Bank/IMF and the competitive advantage have ravaged Central and South America as well as plenty of other regions around the world. The fastest growing economies over the last twenty years, the asian tigers, have done so with protectionist policies, which is also the way Japan, the US, Britain and Germany came to be.
Canada is one of the few places where the competitive advantage actually work, but they already had the European culture and work force in place to begin advancing the rest of their economy.
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United States22883 Posts
On September 27 2008 09:39 Savio wrote:Show nested quote +On September 27 2008 08:20 Last Romantic wrote:On September 27 2008 08:15 fusionsdf wrote:On September 27 2008 07:48 Flaccid wrote:On September 27 2008 06:42 Savio wrote:
a bunch of stuff about trade And then there was a leaked conversation between Obama and (I believe) a Canadian minister where he stated that he wasn't actually serious about doing anything with NAFTA. Good ol' political posturing. god fuck ctv fuck them so hard for good or for bad, no one from obama's camp said that to the canadian embassy someone from clinton's campaign did, and somehow in the inept reporting of ctv that morphed to obama regardless, i hope nothing happens to nafta. So do I. Did you know that Canada is our #1 trade partner? We trade more with Canada than with China or any other country. Mexico is up there too. I think it makes our continent more unified. Even though our governments may have way different values/leanings, we all know we are allies and trade partners. In fact its not even close. Canada is WAY ahead of China. http://www.census.gov/foreign-trade/top/dst/2007/12/balance.html
To be fair, that's partially the case because of NAFTA, so you can't use it as proof of our needing it. You'd have to draw statistics from the pre-NAFTA years. In any case, I agree that it's a beneficial thing.
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United States22883 Posts
Bad answers on both sides atm
Ok, McCain just started lying. Anyone want to keep track of this for both sides?
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United States20665 Posts
both sides are spouting SO much bullcrap
my god /suicide
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So far, its pretty boring.
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McCain just ripped him good on Pork spending
LoL, 1 million dollars a day.
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both sides bsing naturally but McCain far more
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United States20665 Posts
Earmarks are a 150 mineral Protoss drug
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United States22883 Posts
Obama wins round 2
300 > 18
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United States20665 Posts
CEOs of fortune 500 economies deserve that shit
my god it's not like any bum can do that shit
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Business taxes need to be cut for sure. That will stop so much outsourcing of jobs. You'd have to be crazy right now to form your company in the US rather than a more businness friendly country.
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Bah, taxes are boring, lets talk about Iran.
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United States20665 Posts
yes, the market CAN solve everything.
On September 27 2008 10:22 Savio wrote:
Business taxes need to be cut for sure. That will stop so much outsourcing of jobs. You'd have to be crazy right now to form your company in the US rather than a more businness friendly country.
Agreed. our profit tax is insane.
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United States22883 Posts
On September 27 2008 10:24 Last Romantic wrote:
yes, the market CAN solve everything.
Especially when it hits equilibrium during a stagnant period, right?
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United States20665 Posts
how the fuck does this shit jump from poor guys to oil barons
exxon mobil fighting~!
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mccain was looking really strong, but that nervous laughter is really killing him
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EPT
