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by jimmytidey
3708 days ago
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Comparative advantage is just a model, as you rightly point out, I'm sure in any real world instance the situation is much more complicated. However, its important to know that many economists believe its the foundational model on which further elaboration of trade policy should be built. That's why it's worth understanding. |
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Krugman was using the model to argue in favour of free trade. He'd be much better off arguing using historical examples if he wanted to be convincing.