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→International trade and comparative advantage: Spelling/Grammar Check & Cleanup, typos fixed: onthe → on the
Now in some countries, labor efficiency is greater than in others. In these countries, all goods are cheaper than in places where labor is used inefficiently. Moreover, labor is almost everywhere used more efficiently in certain branches of production than in others. Ricardo (in his "theorem of comparative costs") argued that every country could maximize its benefit from international trade by specializing in the export of those goods it produced least inefficiently and importing those it produced most inefficiently.
Now in some countries, labor efficiency is greater than in others. In these countries, all goods are cheaper than in places where labor is used inefficiently. Moreover, labor is almost everywhere used more efficiently in certain branches of production than in others. Ricardo (in his "theorem of comparative costs") argued that every country could maximize its benefit from international trade by specializing in the export of those goods it produced least inefficiently and importing those it produced most inefficiently.
Ricardo formulated the laws governing movements of goods, and countermovements of money from one place to another. Trade, he said, is essentially the same as barter, since money seldom leaves a country. These ideas were further developed by [[John Stuart Mill]] in his theory of international values. Ricardo's theory of comparative cost was fundamental to later thought onthe international localization of production.
Ricardo formulated the laws governing movements of goods, and countermovements of money from one place to another. Trade, he said, is essentially the same as barter, since money seldom leaves a country. These ideas were further developed by [[John Stuart Mill]] in his theory of international values. Ricardo's theory of comparative cost was fundamental to later thought on the international localization of production.
Ricardo had several influential disciples, notably [[James Mill]], [[John McCulloch]], and [[Nassau Senior]].
Ricardo had several influential disciples, notably [[James Mill]], [[John McCulloch]], and [[Nassau Senior]].