"Accoring to Ricardo's analysis, a country exports any good whose production requires fewer labor hours per unit than the labor hours per unit needed to produce the good in the foreign country. That is, the country exports any good in which its labor producivity is higher than the labor productivity for this good in the foreign country." Do you agree or disagree? why?
"Accoring to Ricardo's analysis, a country exports any good whose production requires fewer labor hours per unit than the labor hours per unit needed to produce the good in the foreign country. That is, the country exports any good in which its labor producivity is higher than the labor productivity for this good in the foreign country." Do you agree or disagree? why?
According to Ricardo's analysis, a country should specialize in and export goods that it can produce with a lower opportunity cost relative to other countries. This opportunity cost is often measured in terms of labor hours or productivity. In essence, a country exports goods in which it has a comparative advantage, meaning it can produce those goods more efficiently than other countries. This statement suggests that a country exports goods where its labor productivity exceeds that of foreign countries.
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