When discussing comparative advantage, students will often ask if it's possible for a nation to gain a comparative advantage where there originally is none. The answer of course lurks in that basic concept opportunity cost. Don Boudreaux at Cafe Hayek gives a good explanation while discussing the idea of energy independence.
I would suggest you could even use a production function to help with the explanation. What do you think?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment