Comparative Advantage

What is comparative advantage? And why is it important to trade? This video guides us through a specific example surrounding Tasmania — an island off the coast of Australia that experienced the miracle of growth in reverse. Through this example we show what can happen when a civilization is deprived of trade, and show why trade is essential to economic growth.

In an economy with a greater number of participants trading goods and services, there are more ways to find a comparative advantage and earn more by creating the most value for others. Let’s dive right in with an example from our new friends, Bob and Ann.

Help us caption & translate this video!

[Boncoh]

This was the most intense eye contact I've ever made with a YouTube video

[blaketaplin]

This was really helpful in one of my University assignments thank you. but damn man, blink every once in awhile.

[audrea]

THIS COURSE IS BRILLIANT!!! Thank you so much!!! So HELPFUL before the final exam!

[randyshort]

Not a good enough reason to use the term "orgy"

[retrogamer]

this video helped me a lot for my report tomorrow. Thank you!

[Actionjackson]

Very helpful and simple way of explaining it. Thanks!

[TheJan]

thank you <3
you really saved my exam!! :D

Greetings from Germany :D

[sophiegille]

What an awesome video! Thank you so so much!
I'm ready for the upcoming exam! :)

[b.anjali]

Marginal revolution is my favorite channel,
I like lot and I show every video ..

[keiral]

The most helpful and clear with fun image vedio compare to others, thank you! I finnaly understaood after watched this one.

[harryshepherd]

Thank you for this. To clarify, in this case...
Anne has comparative advantage in fish and Bob has comparative advantage in bananas? Is that correct?

[KhaiNguyen-sjtx]

What a informative videos, thank you!

[innocentsmoothie]

thanks for the video, helped me with my exam too . one more thing doe .... this dude looks like the evil guys from spider man right :D? like the dad from peters friend ... portrayed by willam dafoe

[meronberhe]

Wow almost everyone here in colllege I’m in 6th grade learning this

[iliketacos]

5:15 Those are some really white eyeballs😆

[schmirlimm]

for those of you who wonder: yes Bob and Ann are in the opening of deperate houswifes ;)

[markking]

A long time ago when seas were low, Tasmania was a part of Australia. Just pointing out that Tasmania is still, and always has been, a part of Australia.

[xebec]

I don't understand the end. Why does Bob get to raise his price to 3 fish per banana just because Ann became better at catching fish? Why can't Ann pay the same amount of 2 fish per banana and just get more bananas?

[HarrisonLeeFishing]

No way Ann catches more fish than Bob. Bob is obviously superior