Sunday, 15 May 2016

Time to go back to the basics to benefit more from trade (Jong Woo Kang, E15 Initiative)

When Robinson Crusoe was shipwrecked on a deserted island, he couldn’t enjoy any benefits from division of labour until he met Friday. Although the Robinson Crusoe economy is often used as a simple ‘one consumer, one producer’ type economic model, a more realistic setup cannot be construed without introducing multiple agents. Anybody who has taken basic economics classes might have had an eye-opening experience upon encountering Ricardian comparative advantage theory and gains from trade

http://e15initiative.org/blogs/time-to-go-back-to-the-basics-to-benefit-more-from-trade/

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