{"id":219,"date":"2024-05-30T03:28:18","date_gmt":"2024-05-30T03:28:18","guid":{"rendered":"https:\/\/course.oeru.org\/maec103\/?page_id=219"},"modified":"2024-05-30T03:28:18","modified_gmt":"2024-05-30T03:28:18","slug":"absolute-and-comparative-advantages","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/maec103\/learning-pathways\/international-trade\/absolute-and-comparative-advantages\/","title":{"rendered":"Absolute and comparative advantages"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\"><div class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"reading\" src=\"https:\/\/course.oeru.org\/maec103\/wp-content\/themes\/oeru_course\/idevices\/Icon_reading.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Required Readings: The Debate on Globalization<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<div class=\"thumb tright\">\n<div class=\"thumbinner thumbnail\" style=\"width:302px;\"><a href=\"https:\/\/wikieducator.org\/File:Businessman-2682712_1920.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"\/\/wikieducator.org\/images\/thumb\/e\/ec\/Businessman-2682712_1920.jpg\/300px-Businessman-2682712_1920.jpg\" width=\"300\" height=\"150\" class=\"thumbimage img-responsive\"><\/a>  <\/p>\n<div class=\"thumbcaption\">Globalization<\/div>\n<\/div>\n<\/div>\n<p>\nAt this point you should take some time to learn more about the debate around globalization and the role that absolute advantage has on trade.\n<\/p>\n<p>\n<\/p>\n<ul>\n<li> Read <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/learn.saylor.org\/pluginfile.php\/31760\/mod_resource\/content\/2\/lec18_ricardian.pdf\">MIT: Roberto Rigobon&#8217;s &#8220;Applied Macro- and International Economics, L18: The Debate on Globalization&#8221;<\/a> lecture notes, which cover important points about why countries trade. These lecture notes will clarify perspectives on the topics of absolute advantage and comparative advantage. This resource will also reinforce how gains from trade accrue from comparative advantage and specialization.\n<\/li>\n<\/ul>\n<ul>\n<li> Read this article from <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/en.wikipedia.org\/wiki\/Absolute_advantage\">Wikipedia<\/a>about Absolute Advantage and then watch the following video from Khan Academy about both absolute and comparative advantages.\n<\/li>\n<\/ul>\n<p>\n<\/p>\n\n<div data-mode=\"normal\" data-oembed=\"1\" data-provider=\"youtube\" id=\"arve-youtube-xn3uv5fsbku\" style=\"max-width:400px;\" class=\"arve alignleft\">\n\t<div class=\"arve-inner\">\n\t\t<div style=\"aspect-ratio:500\/281\" class=\"arve-embed arve-embed--has-aspect-ratio\">\n\t\t\t<div class=\"arve-ar\" style=\"padding-top:56.200000%\"><\/div>\n\t\t\t<iframe allow=\"accelerometer &apos;none&apos;;autoplay &apos;none&apos;;bluetooth &apos;none&apos;;browsing-topics &apos;none&apos;;camera &apos;none&apos;;clipboard-read &apos;none&apos;;clipboard-write;display-capture &apos;none&apos;;encrypted-media &apos;none&apos;;gamepad &apos;none&apos;;geolocation &apos;none&apos;;gyroscope &apos;none&apos;;hid &apos;none&apos;;identity-credentials-get &apos;none&apos;;idle-detection &apos;none&apos;;keyboard-map &apos;none&apos;;local-fonts;magnetometer &apos;none&apos;;microphone &apos;none&apos;;midi &apos;none&apos;;otp-credentials &apos;none&apos;;payment &apos;none&apos;;picture-in-picture;publickey-credentials-create &apos;none&apos;;publickey-credentials-get &apos;none&apos;;screen-wake-lock &apos;none&apos;;serial &apos;none&apos;;summarizer &apos;none&apos;;sync-xhr;usb &apos;none&apos;;web-share;window-management &apos;none&apos;;xr-spatial-tracking &apos;none&apos;;\" allowfullscreen=\"\" class=\"arve-iframe fitvidsignore\" credentialless data-arve=\"arve-youtube-xn3uv5fsbku\" data-lenis-prevent=\"\" data-src-no-ap=\"https:\/\/www.youtube-nocookie.com\/embed\/xN3UV5FsBkU?feature=oembed&amp;iv_load_policy=3&amp;modestbranding=1&amp;rel=0&amp;autohide=1&amp;playsinline=0&amp;autoplay=0\" frameborder=\"0\" height=\"224.8\" loading=\"lazy\" name=\"\" referrerpolicy=\"strict-origin-when-cross-origin\" sandbox=\"allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox\" scrolling=\"no\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/xN3UV5FsBkU?feature=oembed&#038;iv_load_policy=3&#038;modestbranding=1&#038;rel=0&#038;autohide=1&#038;playsinline=0&#038;autoplay=0\" title=\"Video by Kahn Academy\" width=\"400\"><\/iframe>\n\t\t\t\n\t\t<\/div>\n\t\t\n\t<\/div>\n\t\n\t\n\t<script type=\"application\/ld+json\">{\"@context\":\"http:\\\/\\\/schema.org\\\/\",\"@id\":\"https:\\\/\\\/course.oeru.org\\\/maec103\\\/learning-pathways\\\/international-trade\\\/absolute-and-comparative-advantages\\\/#arve-youtube-xn3uv5fsbku\",\"type\":\"VideoObject\",\"embedURL\":\"https:\\\/\\\/www.youtube-nocookie.com\\\/embed\\\/xN3UV5FsBkU?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0\",\"name\":\"Video by Kahn Academy\"}<\/script>\n\t\n<div class=\"arve-error\"><p><small><abbr title=\"Advanced Responsive Video Embedder\">ARVE<\/abbr> error: maxwidth: <code>400px<\/code> is not valid<\/small><\/p><\/div>\n<\/div>\n<p><br style=\"clear:both;\">\n<\/p>\n<p>Having read these texts and watched the video, jot down any of your reflections, thoughts or questions on this subject in a WeNotes post.\n<\/p>\n<\/p>\n<div><p>You must be logged in to post to WEnotes.<\/p><\/div>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/p>\n<p><!-- \nNewPP 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