1.3 — The Ricardian View of Trade: Comparative Advantage — Class Notes


Tuesday, August 25, 2020


Today we begin looking at David Ricardo’s view of trade, focusing on comparative advantage. We will derive a very simple model of comparative advantage and practice working with it. Next class, we will dive into a more formal Ricardian model that will ultimately be extended into the modern models of international trade over the coming weeks.


Please see the suggested (but none are required) today’s readings.


Live Class Session on Zoom

The live class Zoom meeting link can be found on Blackboard (see LIVE ZOOM MEETINGS on the left navigation menu), starting at 2:00 PM.

If you are unable to join today’s live session, or if you want to review, you can find the recording stored on Blackboard via Panopto (see Class Recordings on the left navigation menu).

Practice Problems

Today you will be working on practice problems on simple comparative advantage. Answers will be posted later.