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International trade: Absolute and comparative advantage

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Trade theories: Why we trade
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Text Comments (62)
LUCKY A (2 months ago)
Kamuju Sridivya (5 months ago)
Gd explanation 😃😃😃
KenTech41 (9 months ago)
Japan can make a 10 DVD's of HEntai in just only in 10 seconds
Siyoseful (3 months ago)
1000 DVD's in less than 1 second, bro.
Good stuff 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 / 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐚𝐫𝐝𝐬 / 𝐌𝐚𝐤𝐢𝐧𝐠 $ 𝐅𝐨𝐫 𝐒𝐭𝐮𝐝𝐞𝐧𝐭𝐬 𝐂𝐡𝐚𝐧𝐧𝐞𝐥 𝟒𝟒𝟐/𝟏𝟎𝟎𝟎 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞𝐫 𝐆𝐨𝐚𝐥
Rigjan Kaur (1 year ago)
Actually I need heckscher ohlin theory also
Rigjan Kaur (1 year ago)
Nice sir thanku sir
Ashfiqa tasnim (1 year ago)
Thank you sir.....it's very helpful....
Adelene Peter (1 year ago)
Finally! I get it. THANK YOU
Tarek Asaduzzaman (1 year ago)
Thank you SIr! That was helpful. I am going to write this in my exam today :)
Fidellio369 (1 year ago)
what's the name of the instructor?
SaudaraLink (2 years ago)
Great production quality. One problem though: if there are no computers, DVDs are worthless. I didn't here that other products were produced domestically. Maybe a little bubble explaining that would help. Another approach to this issue is asking how many people die from starvation in either country from choosing to produce a DVD instead of a bag of wheat. The wheat versus wine example makes more sense. Both have calories. Wheat versus beef or wheat versus soybeans would make more sense practically. Rice versus beef would also make sense.
ArGonzalez (2 years ago)
why would ,for example, a good bought from a country that can effectively and cheaply produce it mean that good would be cheap?Diamonds are very expensive yet there absolutely common and easy to produce.
bobkilla430 (2 years ago)
dnbGonzalez if i remember correctly, theres a monopolistic aspect to diamonds that theres one major company who holds most of the diamond supply which keeps the demand artificially high because the company limits how much of the product goes out to be sold.
Ashley New (2 years ago)
diamonds are not cheap because they are not common. Lower grade, smaller diamonds are more common. That is why they are cheaper. But high grade, larger diamonds are very rare. They may be abundant in one country but the global demand determines the price allocated to it.
小瀧健之介 (2 years ago)
https://docs.google.com/forms/d/e/1FAIpQLSd-lMv4VeI8SOeHk5_p2xCE0A1ckuMoqzUGSxwB7TiOrWmDTA/viewform?embedded=true Hi all, I'm Kennosuke. I'm an International student from Japan who's studying international business and created this survey to better understand how people perceive Japan from social and economic perspectives. Thank you for taking the time to fill out this survey!
Tiktok Toyatoya (2 years ago)
very well explained
Debojit Dey (2 years ago)
actually i need the different between modern theory nd ricardian therory can u help me
Boss Gsk (2 years ago)
too good sir thanks a lot
Willa Ho (2 years ago)
What if Japan has the same opportunity cost as South Africa to produce DVD and wheat, just like Japan can produce 4 DVDs or 20 wheat while South Africa can produce 8 DVDs or 40 wheat. Should South Africa trade with Japan in this case?
Willa Ho (2 years ago)
Thanks ^_^
Tim Bateman (2 years ago)
Willa Ho in this case , neither country would benefit from trade , the only think you could say is that Japan has the absolute advantage in neither and South Africa has absolute advantages in both. Hope this could help!
Franz Ferdinand (2 years ago)
KenTech41 (9 months ago)
if u need a friend like him!
AkA Eka (3 years ago)
how to get this video,.
bob dart (3 years ago)
I fap to this
WSC9293 (3 years ago)
These economic theories are rather silly. Who decides the opportunity costs? Do we all gather together as nation and analyze this stuff? Pfft.
SaudaraLink (2 years ago)
The theories are still useful. This simple theory can help people see that there are some economic benefits to international trade. Of course, DVDs are useless if there are no other products in this world.
WSC9293 (2 years ago)
@Logos AO I tend to think economics is for people who like to navel gaze.  The theories in economics are all assumption-based and hold to ceteris paribus (all other things being equal).  You never see such a concept in the real world.
Logos AO (2 years ago)
In this case he is only considering the opportunity cost to be the "lost production of the OTHER good". I agree that there are lots of factors that can comprise opportunity cost in the real world. For example, what is the opportunity cost of specializing too much and not developing other (potentially more profitable) products in the future. There are other factors like transportation costs to markets as well as transportation costs of inputs from their respective sources. Real life is messy, but in a narrow sense his example still holds true. Once you bring in other possible opportunity costs, well, that changes everything.
Meenakshi (3 years ago)
Good Video
Alow (3 years ago)
You sound like Thoughty2
Etch. A Sketch (2 years ago)
He sounds like David Mitchell!
///AMG (3 years ago)
Sarah1627 (2 years ago)
cliffhanger is painful... :(((
Clear and explicit. Thank you.
Brianna Michaels (3 years ago)
best video ever
Ann Skinner (4 years ago)
Very Clear and easy to understand - Thanks!
Sovjet Television (2 years ago)
The truth is out there..
Wondervictim (3 years ago)
+Ann Skinner SKINNER!
Jakobaker (4 years ago)
Best. Ending. Ever. If you need to... WHAT DO I NEED TO DO? lol at least I understood it or I'd be in trouble
Solomon Modisha (4 years ago)
Clear as day.
Solomon Modisha (4 years ago)
Clear as day.
CHAYARAJ CHAVALI (4 years ago)
Clear, concised and simple fundamentals for the genesis of International Trade..Thanks. I have subscribed and liked...cheers
Sienneh Moifolley (4 years ago)
what does international trade do to a nation's domestic production possibilities?
Nem3siS (5 years ago)
Good one! Thanks!
Azar Aftimos (5 years ago)
Thank you.
BIGGIE JAY (5 years ago)
Well appreciated
Ddwayney D (5 years ago)
Nice presentation! Clear, concise and to the point, with easy to understand examples. :)
X Helen (5 years ago)
Gaylord Butts (5 years ago)
currently watcing this in econ
Bella Cooper (5 years ago)
Thank u very much!
Evan Stafford (5 years ago)
Very simple presentation, thanks.
Alfredo Azpurua (5 years ago)
This is a very simple and efective alternative to teach the theory on international trade. Congratulations !
UkuphumaDoon (6 years ago)
Thank you for making the theory so simple. Of course there are so many other issues, but when you strip it down to the basics, with simple examples, it makes sense and a lot simpler than trying understand it using the textbook only.
Coda Greene (6 years ago)
when it said whet, i thought it said weed
Baho Hortence (6 years ago)
Very well understood, simple and precise example of two countries
MrUncensorable (7 years ago)
Yeah I find this theory bogus as well, even enslaving example country a produces hundreds of business educated persons and country B produces wheat
Jacobite (7 years ago)
This is nonsense, a factory will produce just as well irregardless of location, all goods should be sold at world prices, and therefore given world priced labour (Which can be insourced if needed), no country can have a comparitive advantage past the primary sector... Any differences are the result of regulation, regulation should change not buisnesses...
Rich (7 years ago)
@Webmagery This model assumes COMPLETE specialisation - each country must specialise in one item only. The opportunity cost of producing DVDs (instead of wheat) for South Africa is greater, and so even though it has absolute advantages in the production of both goods, it will concentrate it's production upon Wheat to generate the largest gains and will allow Japan to specialise in the production of DVDs.
Rich (7 years ago)
@saradani79 International trade: a European text (Brenton, Scott, Sinclair) is brilliant, whether you are interested in the additional EU analysis or not; the fundamentals are well explained.
Naina Dwivedi (8 years ago)
really nice...............cleared my concepts.nice

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