How Nations Conference on Trade and whether they will benefit from it are two of the oldest and most important questions in economics. In the 170 years since David Ricardo developed a formal theory of comparative advantage, it has become one of the principles of the most common among professional economists. Despite this wide acceptance in the professional community, the foundations of international trade, is still poorly understood by many politicians and occasional commentator. This note presents the theory of comparative advantage. It is divided into four parts. The first is a brief history of the concept of comparative advantage. The second develops a simple model with a few examples to demonstrate the benefits that result from trade between countries. Third briefly covers several extensions simple model. Finally, two traditional objections to free trade reviews. Rewritten version of the earlier notes. "Hide
by Robert Kennedy, Nancy F. Koehn 7 pages. Publication Date: June 10, 1996. Prod. #: 796183-PDF-ENG
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