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Discuss why Ricardo's cost comparative advantage theory explains the state of current trade pattern between the developing and developed countries better than Smith's absolute cost
Discuss why Ricardo's cost comparative advantage theory explains the state of current trade pattern between the developing and developed countries better than Smith's absolute cost advantage about.
a) first explain the basic difference between the two theories
b) provide clarification why the application of Adam Smith's absolute advantage theory might limit the volume of the global trade while the application of David Ricardo's attributes to the expansion of global trade.
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