The Ricardian Theory of Comparative Advantage

Policy and Theory of International Economics Course

Welcome to The Ricardian Theory of Comparative Advantage, a module of Policy and Theory of International Economics course. Please, click in one on the lessons below to start.

Lessons in this module

The Reasons for Trade start lesson
The Theory of Comparative Advantage: Overview start lesson
Ricardian Model Assumptions start lesson
The Ricardian Model Production Possibility Frontier start lesson
Definitions: Absolute and Comparative Advantage start lesson
A Ricardian Numerical Example start lesson
Relationship between Prices and Wages start lesson
Deriving the Autarky Terms of Trade start lesson
The Motivation for International Trade and Specialization start lesson
Welfare Effects of Free Trade: Real Wage Effects start lesson
The Welfare Effects of Free Trade: Aggregate Effects start lesson
Appendix: Robert Torrens on Comparative Advantage start lesson