Over the years, economic theories have developed to provide the current framework for the basis of trade, terms of trade, and gains from trade. For this week’s discussion, please:
- Select two countries of your choice other than Saudi Arabia and appraise their absolute advantages.
- Then, compare and contrast these countries’ comparative advantage(s).
- What economic policies will strengthen the comparative advantage of these two countries?
- Will the global supply contribute to an expansion or a contraction of the comparative advantage. Why?