Who has the comparative advantage and the absolute advantage in cheese and wine?
if france makes 40 wine and 80 cheese and belgium makes 15 wine and 60 cheese
Tagged with: belgium • cheese • wine
Filed under: All Things Wine
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France has the advantage totally. Forget Ricardo’s theory, it is all bullshit. His socialistic view is to promote world trade and try to social engineer economies "to help the small disadvantaged country" as if it were a moral imperative. Moral imperatives are a subjective theory or a stupid attempt to practice altruism or infuse the world with your ideas of "what is right" like a big brother’s control.
wow.. i used to know that.. i forget
France has the comparative advantage in wine. Belgium has the comparative advantage in cheese. France has the absolute advantage in both wine and cheese.