Specific Factors and Income Distribution

Ricardian One Factor Model's assumes that every trade will benefit everyone. However, in reality, even when trade is beneficial for an economy as a whole, some groups are negatively affected. The reason for this is that trade changes the quantity of various goods and/ or services produced in each economy. Specific Factors Model was developed by Paul Samuelson …

Labour Productivity and Comparative Advantage: The Ricardian Model

In his book 'Principles of Political Economy and Taxation', David Ricardo, a British Economist said: "A Country possessing very considerable advantage in machinery and skill and which may therefore be enabled to manufacture commodities with much less labour than her neighbours, may in return for such commodities import a portion of its corn required for its …

Decision Making

There are several elements that are involved in the decision-making, planning and control process: Identify Objectives that will guide the business; Plan Course of Actions that might enable the objectives to be achieved; Select Alternative Course of Actions that might enable the objective to be achieved; Implement the decisions as part of the planning and budgeting process; Compare actual and …

What is International Economics?

International Economics is a study of interactions between nations through flows of Goods and Services (Trade), People (Migration), Money (Capital Flows). The study in itself is not new, in fact it is an old subject that continues to grow to be more and more important in research and policy debates. This is due to the fact that nations interact …