On the “Inequality of Relative Production Cost” in International Trade:The Integration and Unification from Ricardian Model to Economic Scale Model

Comparative advantage is basic motivation for a country to participate in international division of labor and international trade.Ricardian model,Heckscher-Ohlin model and Economic Scale model have proved comparative advantage based on production cost separately from perspective of labor productivity,factor endowment and increasing returns to scale,and they can be expressed as the inequality of relative production cost.The comparative advantage based on production cost is a kind of narrow comparative advantage.With institution and trade,ecological environment and trade,sustainable development and trade gradually becoming important subject in reality and academic field,it is necessary to expand cost view of comparative advantage theory and construct generalized comparative advantage based on full cost.