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

Required Readings:

• Chapter 2.1 in Feenstra & Taylor

Feenstra and Taylor dive right into Ricardo’s famous one-factor model starting in section 2.2. I am instead easing you into the idea of comparative advantage that doesn’t focus on labor productivity and marginal products, but just some simple numbers. So you can read the first part of Chapter 2 just for a basic overview if you wish.