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Response to dawg (Reply #26)

Thu Dec 29, 2011, 12:24 PM

28. Poor or not, if you control manufacturing, you eventually control R&D.

 

Comparative Advantage has never worked in international trade, only in theory. In fact the seeds for Comparative Advantage's failure was planted by your own points: transportation costs make up one example for why it would simply be cheaper to do the work at home, if wages were equal.

In fact it is even possible that David Ricardo's Comparative Advantage has been totally misunderstood by free traders. Not calling YOU a free trader though.

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