There are differences between these two theories In explaining International trade patterns. First of all, the Arcadian model Is much simpler compared to the factor endowment theory. In the Arcadian theory, each country is faced with a constant set of trade-offs and that trade is done from the differences in labor productivity where labor is the only factor of production. On the contrary, the ...
Ricardian Theory: International Economics and Finance
December 16, 2017 \ Finance \ 0 Comments