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In what way was Ricardo's law of comparative advantage superior to Smith's theory of absolute advantage? How do gains from trade arise with comparative advantage?
In what way was Ricardo's law of comparative advantage superior to Smith's theory of absolute advantage? How do gains from trade arise with comparative advantage? How can a nation that is less efficient than another nation in the production of all commodities export anything to the second nation? What is the exception to the law of comparative advantage? How prevalent is it? Why is Ricardo's explanation of the law of comparative advantage unacceptable? What acceptable theory can be used to explain the law?
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