“Developing countries should exploit their own comparative advantage and quit trying to invest in physical and human capital to develop high-tech industries.” Comment. 6. Suppose you found that...


“Developing countries should exploit their own comparative advantage and quit trying to invest in physical and human capital to develop high-tech industries.” Comment. 6. Suppose you found that exports from the United States to China were mainly goods, such as airplanes, that require much capital compared to labor, and that exports from China to the United States were mainly goods, such as toys, that require much labor compared to capital. Are these patterns consistent with comparative advantage?



May 19, 2022
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