The Development and its Revelation of Modern Comparative Advantage Theory
Hongwei Zhu
Abstract
Hongwei Zhu
Abstract
The theory of comparative advantage, the core of international trade theory is being deepened with the development of international trade. Different countries in the same era have Different comparative advantage and the comparative advantage in the Different eras still has Different character. The comparative advantage in the real economy is dynamic. The developing countries must schedule its economic policy based on its comparative advantage, both native comparative advantage and advanced technology. They should increase investment of manpower capital to realize the conversion of comparative advantage. In this way the developing countries can engender real advantage of international competition and promote their native industrial structure in international economy.
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The theory of comparative advantage, the core of international trade theory is being deepened with the development of international trade. Different countries in the same era have Different comparative advantage and the comparative advantage in the Different eras still has Different character. The comparative advantage in the real economy is dynamic. The developing countries must schedule its economic policy based on its comparative advantage, both native comparative advantage and advanced technology. They should increase investment of manpower capital to realize the conversion of comparative advantage. In this way the developing countries can engender real advantage of international competition and promote their native industrial structure in international economy.
Key concepts: Comparative advantage, Competitive advantage, Economics, Competition (biology), Revealed comparative advantage, International trade, Developing country, Industrial organization