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This are the general instructions given in class: Use graphical analysis and detailed economic reasoning to interpret empirical evidence and/or to show your statements following

This are the general instructions given in class:

Use graphical analysis and detailed economic reasoning to interpret empirical evidence and/or to show your statements following the methods and contents of the ricardian model lectures. Complete the analysis with appropriate assumptions if needed and proofs of theoretical propositions (tailored to your specific case).

QUESTION NR. 1

Many countries in sub-Saharan Africa have very low labor productivity in many sectors, for example in manufacturing and agriculture. They often despair of even trying to attempt to strengthen their industries unless it is done in an autarkic context, behind protectionist walls. The reason is that they do not believe they can compete with more productive industries abroad'.

Comment this statement, and accurately discuss this issue in the context of the Ricardian model of comparative advantage. Graphical analysis is required to support your answer.

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