This concept was first described by Robert Torrens in an 1815 essay on the Corn Laws, but it is most commonly attributed to David Ricardo, who explained it in On the Principles of Political Economy and Taxation. It allows specialization in production, and it allows countries to consume beyond their production possibility frontiers. According to this theory, a country should export (*) goods which it can produce at a low opportunity cost, and impo
This concept was first described by Robert Torrens in an 1815 essay on the Corn Laws, but it is most commonly attributed to David Ricardo, who explained it in On the Principles of Political Economy and Taxation. It allows specialization in production, and it allows countries to consume beyond their production possibility frontiers. According to this theory, a country should export (*) goods which it can produce at a low opportunity cost, and import goods which other nations can produce at a lower opportunity cost than its own. FTP, name this economics principle which states that a country can still benefit from trade even if it doesn't have an absolute advantage in the production of any good.
This concept was first described by Robert Torrens in an 1815 essay on the Corn Laws, but it is most commonly attributed to David Ricardo, who explained it in On the Principles of Political Economy and Taxation.
{comparative} advantage