Monetary policy and international trade: Absolute advantage and comparative advantage

9.2 Absolute advantage and comparative advantage

Activities

Wikipedia: "Absolute Advantage"

• Read this article about absolute advantage.

MIT: Roberto Rigobon's "Applied Macro- and International Economics, L18: The Debate on Globalization"

• Read these lecture notes, which cover important points about why countries trade. These lecture notes will clarify perspectives on the topics of absolute advantage and comparative advantage. This resource will also reinforce how gains from trade accrue from comparative advantage and specialization.