First described by Robert Torrens in 1815, it was completely explained in 1817's Principles of Political Economy and Taxation, where wine and cloth trade between England and Portugal was analyzed.
First described by Robert Torrens in 1815, it was completely explained in 1817's Principles of Political Economy and Taxation, where wine and cloth trade between England and Portugal was analyzed. Often used as a bedrock principle in explaining free trade, it assumes limited resources and the mobility of goods. It occurs when one entity, which can more profitably produce a particular good, specializes in it. Identify, FTP, this quality described by David Ricardo where two nations trade even though one has an absolute advantage over the other.
First described by Robert Torrens in 1815, it was completely explained in 1817's Principles of Political Economy and Taxation, where wine and cloth trade between England and Portugal was analyzed.
{Comparative advantage}