Comparative Advantage Theory | Ricardian Theory of International Trade by Vidhi Kalra

Hey guys! In this video I've tried my best to put this complicated topic in a simple and clear manner for you. Incase you haven't watched my video on Absolute Advantage, would request you to watch that before for a clearer understanding of this video. I have attached the link below! Good luck!
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Follow me on Instagram: 5_minute_economics
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Link to the Absolute Advantage Theory-
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[_noobgamers_]

i bet ... if we were taught in schools like this , we will never forget any concepts . starting with cakes level and slowly to country level, thats a magnificant method. 🙌🙌🙌

[Deevnesh]

I cant thank you enough!! You've summarised what my lecturers took 3 hours to explain in a manner of 10 minutes! Thank you!!!

[bhoomika]

Not even lying you explain complicated concepts so well. Came from Absolute advantage theory video to Comparative cost theory. Thankyou so much 💗

[elowkaisiikape]

Went through many channels yet none beat this!!! Thank you for the valuable input to the viewers

[ezazahmed]

Your knowledge, elegance and grace while teaching is commendable❤️

[angiemenapa]

I am a future business owner and Commerce student who hasn't enrolled in uni yet; but a colleague, friend and business partner asked me to read up on Comparative Advantage for him and get back with my findings. My undergrad background is Nursing, so yes, I did find it initially difficult to switch from medical science to economics. 😁 But your explanations, Ma'am, are helpful. I followed you on Instagram as well.

Thank you and regards from Bolivia, central South America.

[studywithabdulwaheed]

I am from Karachi Pakistan. Excellent explanation. I have been teaching for the last 20 years BUT the way you explain Comparative advantage (especially the graph at the end) is remarkable. Keep up your excellent work. Wish you good luck 👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻

[avantikasaklani]

Why didn't I found you earlier, my life could have been so easy🥺 watching this a night before my exam. But now i have so much confidence that i will attempt and score full marks in this particular topic✨ ❤❤❤

[jishnuc]

The last chart method to find comparitive advantage was brilliant! Thanks for that tip!
Since you are good at baking, i have to say the chart method of the video was the Icing on the cake🎂

[rishabhrastogi]

kash ye explanation mujko koi mid term me mil jati
wonderfully explained
maam ye explanation sun ke toh mereko padhane ka maan kar raha hai
i think i willl be an economist in near future
thank u maam
u earned my respect

[ECONOMICS]

Well explained ma'am
If you look up on the literature of comparative advantage of trade, basically we find two author's work. As you have rightly pointed out, it was initially David Ricardo (1817) who came up with this theory and later by Gottfried Haberler in 1936. Ricardo's theory was based on the LABOUR THEORY OF VALUE. Under the labour theory of value, the price or value of a commodity depends exclusively on the amount of labour going into the production of the commodity. This implies that
1. That either labour is the only factor of production or labour is used in the same fixed proportion in the production of all commodities
2. Labour is homogeneous
Since neither of these two assumptions are true, the explanation of Ricardo's comparative advantage faced a huge problem.
In order to solve this problem, Haberler in 1936 explained the theory of comparative advantage based on the opportunity cost theory thus giving credence to the applicability of this theory.
So what you have explained in this video is Haberler's comparative advantage theory based on opportunity cost and not Ricardo's comparative advantage theory based on labour theory of value.
Thank you

[its_ishasheth]

The example I had in my textbook was so complicated that I decided to skip it but after watching the video things got cleared thankyou
Tomorrow is my economics paper and i am not fully prepared for it. 😢

[sreesai]

have been trying to get hold of this topic from many months!! i just got with ur explaination, Thanks a tonne...!!😇

[vinualex]

Absolutely the last minute tip overturns the complexity of this topic... Good work 👌👌

[vrishtigupta]

i have my international economics exam tomorrow and your videos are a life saver!!!

[hamzahusain]

Thank you so much Di..Because of you i covered nearly 12 big topics in one night and topped the exam..
Thank you Di!😊

[odiacumeconomics]

I just say what an explanation, this is called real economics, less time n more study, thanks mam

[jyothisbabugeorge]

Another wonderful lecture by our rockstar teacher.Maam you're videos deserve more views.Dear Vidhi ma'am can you please do 5 min videos on ugc net economics topics.

[teenachhatria]

Do we always check in y-axis as a shortcut to know which nation has comparative advantage in which product?

[riddhitrivedi]

Economics in 5min quite impressive and your teaching skills are amazing ..❤❤