广东外语外贸大学《新编国际贸易》chapter 3 The Classical Thery of Trade.pptVIP

Chapter 3The Classical Theory of Trade Part Ⅰ The Classical Theory of Trade ---- “Absolute Advantage” and “Comparative Advantage” 3.1 Trade Based on Absolute Advantage—Adam Smith 3.1.1 What is “Absolute Advantage”? “Absolute Advantage”: when on nation is more efficient than another in the production of one commodity but is less efficient than the other nation in producing a second commodity, then both nations can gain by each specializing in the production of the commodity of its absolute advantage and exchanging part of its output with the other nation for the commodity of its absolute d