Criss-crossing through the complex jargons of Social Studies, we often come across a disposition which appeals to us as inherently logical and perfect. While trying to understand them, we are inclined to believe that finally, Social Studies are inching closer to scientific precision. But, almost always, a deeper analysis tells us that it was an absolute fluke. Ricardo Theory of Comparative advantage is also one of them. The theory has almost always fallen flat on its face whenever it was tested in the real world.
Adam Smith and absolute advantage
David Ricardo was one of the few names dominating the top echelons of classical economics. Classical economists believe that a market economy (demand and supply-driven economy) should be self-regulated. According to them, the production units will be driven by demand and in turn demand will be driven by supply. This will keep the circle going.
Adam Smith known as the Father of economics was the biggest exponent of this school of economics. In his book, The......
