Why does comparative advantage matter more than absolute advantage for trade?

Comparative Advantage in International Trade

 

Read the articles:

1)      The Boomerang effect.

http://www.economist.com/node/21552898

 

2)      Comparative Advantage and American Jobs.

http://online.wsj.com/article/SB10001424052748703555804576102500952966450.html

You are expected to make your own contribution in a main topic as well as respond with value-added comments to at least two of your classmates. You are encouraged to respond to other students as well as to your instructor.

In your initial response to the topic you have to answer all questions:

1)      Does the protection of one domestic industry harm another? Please explain.

2)      Why does comparative advantage matter more than absolute advantage for trade? Please explain.

3)      Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.

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