Wednesday, September 22, 2010

absolute and comparative advantage

Are you still having problems with absolute and comparative advantage? If so, watch this video for further explanation.

1 comment:

phillipbrandon4 said...

What i learned from this video IS that absolute value is the cost in which is cheaper when it comes to human resources. Comparative advantage is the opportunity cost which has to be considered when calculating. In the example he explained using cheese and cars and how China has the absolute value in both but it could still be a gain from the exchange. Which goes back to the idea of both countries will benefit, which we learned early on this school year; 1st semester unit one.