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Ayesa Guerrero
on Oct 25, 2024

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The Ricardian model of international trade assumes that countries have the usual bowed-out (concave to the origin)production possibility frontiers.

Ricardian Model

An economic theory that focuses on comparative advantage, explaining how countries can gain from trade by specializing in producing goods at a lower opportunity cost.

Production Possibility Frontiers

These are curves that depict the maximum potential output of a combination of two goods or services that an economy can produce with available resources.

  • Acquire knowledge of the concept of comparative advantage and its impact on global trading systems.
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Lizzie colliganOct 27, 2024
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