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Labour Productivity and Comparative Advantage: Ricardian Model

Labour Productivity and Comparative Advantage: Ricardian Model. Why countries engage in trade? (i) Countries are different from each other (ii) Specialization and economies of scale in production A one-factor economy ? Home: Labour: Two goods (Wine and Cheese)

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World relative price - PowerPoint PPT Presentation

Labour Productivity and Comparative Advantage: Ricardian Model