Unit III Assessment

1. Explain David Ricardo's theory of comparative advantage. How does comparative advantage differ from absolute advantage? What is the relationship between comparative advantage and gains from trade?

Your response should be at least 500 words in length. 

 

2.  Define both internal and external economics of scale. How do economies of scale play into trade between two countries with one factors of production?

Your response should be at least 200 words in length. 

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