Modern Trade: Ricardo's Comparative Advantage

This lecture delves into the historical shift in trade conceptualisation during the 19th century, focusing on David Ricardo's 'Principle of Comparative Advantage'. It explains how nations tend to export goods based on relative prices, leading to mutual gains from trade. The lecture also explores the impact of comparative advantage on production patterns, emphasizing efficiency and productivity. Additionally, it discusses the evolution of globalisation from laissez-faire capitalism to a more socially conscious approach, highlighting the roles of efficiency in the market and justice in government policies. Twists on traditional conceptualisations by economists like Stiglitz and Rodrik are also examined, along with extreme views on globalisation as a conspiracy.