Tuesday, April 20, 2010
Comparative Advantage, Interdependence & Volcanoes
Take a look at this story from National Public Radio's Planet Money blog. While many of us are aware of the economic problems related to air travel caused by the volcano in Iceland; I suspect few even considered this aspect. I know I didn't. But it's an excellent example of the concepts of comparative advantage (Kenya's advantage in growing and providing flowers); and interdependence (Kenya's exports and GDP are impacted by sale of flowers to Europe). More posts later today.