In this wave of globalization, you may have heard a lot of noise about “Comparative Advantage”. Do you know the origin of this concept? Who created this concept and when? Maybe you have guessed it. This is a very old concept in economics emerging in the leading study of English economist David Ricardo in 1817 on international trade. When he was reflecting upon and developing his elegant theory of Comparative Advantage in his times, he could hardly imagine the superpower of human beings to change this planet and produce whatever we want today, and probably neither could he imagine the exploding growth of human population on this planet today. Therefore, in his theory there is an important presumption that overall productivity of human societies is too low to satisfy the overall needs of human beings and labor markets are tight in all nations. This presumption obviously fails to fit in today’s reality of international trade. Given its huge population and available productivity today, China alone may produce enough commodities to support half the world, if running in its full capacity of production.
- Dollars Slay the Dragon VI — DEI: A Mirror of Justice
- Dollars Slay the Dragon V — The Magic of US Debts
- Dollars Slay the Dragon IV — DEI: A New Type Of Cold War
- Dollars Slay the Dragon III — Whose Crisis Is This?
- Dollars Slay the Dragon II — the Broken Dream on Olympus
- Dollars Slay the Dragon I — the Beginning of the End
- Do Iraqis Really Hate Americans?
- The Story of Rwandan Genocide — III
- The Story of Rwandan Genocide — II
- The Story of Rwandan Genocide — I
- A Game Without Winners or Losers
- War Of Social Powers
- Social Engineering & Social Powers
- Uncertainty Principle of Economics & Economic Engineering
- What is Economics?
- Big Business vs. Big Government
- Who Is Killing Individual Freedom?
- Is Free Market Really Free?
- Chinese Business Environment: A Lawless Wild Wonderland
- The Missing “Comparative Advantage” in US-Sino Economy
- China Myth (15)
- Chinese History and Legends (1)
- Chinese Language, Art, and Culture (1)
- Letters to USA (24)
- People's Diplomacy (21)
- Political Economy of Knowledge, Innovation, and Human Development (9)