Economics slide 4 - - Specialization, Exchange and...

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Specialization, Exchange and Comparative Advantage Or how did the World become globalized
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Who cooks and who does the laundry in your household? Why? Where is your clothing made? Read the tag and tell us.
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Questions we will try to answer today: Why are so much of our clothes made in China? Why do women traditionally do more housework then men? Is this likely to change? Can you benefit from working in a team with a “weak” student? Is globalization a bad thing?
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Specialization, Exchange and Comparative Advantage David Ricardo developed the theory of comparative advantage to explain the benefits of specialization and free trade. The theory is based on the concept of opportunity cost: Opportunity cost is that which we give up or forgo, when we make a decision or a choice.
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Canada has an absolute advantage because it can produce more food and more clothing in one day than China. Country
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This note was uploaded on 06/14/2011 for the course MACROECONO 100 taught by Professor Adell during the Spring '10 term at Dawson College.

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Economics slide 4 - - Specialization, Exchange and...

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