Thursday, May 18, 2006

Explaining Comparative Advantage

Comparative advantage is one of the fundamental economic concepts when it comes to understanding international trade. At the same time, it seems counterintuitive to many.

For those of you looking for information to use with your students when addressing this concepts, please take a look at Greg Mankiw's recent post. It contains links to two depressing descriptions of sweatshops that ultimately show that while conditions are less than what they would be in the U.S., they are usually better than what existed before in the country described.

It also links to a good discussion of comparative advantage by Paul Krugman. The comments are also worth taking a look at (for the most part, anyway). My questions to you are: Would/could you use this with your students? Why or why not?

Posted by TSchilling at 7:16 PM | Comments (0)

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