DavidRicardo was the first economist to elaborate the theory of comparativeadvantage in his book On the Principles of Political Economy andTaxation. Ricardo wrote:
Under a system of perfectly free commerce, each country naturallydevotes its capital and labour to such employments as are mostbeneficial to each. This pursuit of individual advantage is admirablyconnected with the universal good of the whole . . . It is thisprinciple, which determines that wine shall be made in France andPortugal, that corn shall be grown in America and Poland, and thathardware and other goods shall be manufactured in England. (1817, p. 188)
Read more at On the Principles of Political Economy and Taxation
Think about the 10-year historical period you chose for your finalproject. Identify trade policies of the time and discuss the followingpoints:
- What are the main goods and services the United States traded internationally?
- What trade barriers were in place during that decade?
- What are two pros and two cons of the trade barriers used?
Play devil’s advocate and attempt to debunk two peers’ opinions on the advantages and disadvantages of an open economy.
To complete this assignment, review the Discussion Rubric document.
The 10 year period I chose was the 1990’s