Showing posts with label Jong Woo Kang. Show all posts
Showing posts with label Jong Woo Kang. Show all posts

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/