I stared at my book for hours and listened to lecture for a whole period. Meanwhile I could just watch this vid and understand it within 5 min. It was that simple. Thank you
this is a great video for grasping the crux and basis of these theories! try putting 'simplified' or something of the sort in the title so more people can find it. loved it.
Second explanation seems weird, Germany have comparative advantage for both cars and sausages, say: Germany produce both: total cost : 2000 + 1000 = 3000 Hours, better than USA produce only cars and Germany produce sausage, which cost 3500 hours.
Why Germany was producing sausage was the essence of the explanation of comparative advantage which means when a country has absolute advantage of the other in the production of the goods in question. I hope that helps
lets be honest we all know germany should have a advantage in producing cars. And instead of sausages you could give USA riots or police brutallity. The absolut advantage would be enormous.
this is just supply side and does not take into demand. so the model is a not applicable in the real world. also the examples you have shown are very confusing. you moved from Adam smiths absolute advantage to comparative advantage and moving the figures, it would be better to make a single example. plus this model doesn't tell you anything in reality. the standard trade model is the model applicable only.
Momin Nz You must have skipped the parts in your economics courses that require you to respect the use of models, ceteris paribus, and the assumption of rational human behavior for economic studies. Economic application requires our respective economic qualities and experiences to realize that these economic tools being taught are just starting points for us to use them on this very complicated human behavior discipline.
Im sure I have not missed any part. The point I'm trying to explain is that these models are not applicable in real life. means they are pretty much useless. from a learning stand point they are fine. In reality the models are very complex its just like e.g you cannot follow 1 economic theory such as mercantilism or capitalism. Thanks.
I stared at my book for hours and listened to lecture for a whole period. Meanwhile I could just watch this vid and understand it within 5 min. It was that simple. Thank you
I just wish my international Trade course would also begin with Jojo's music...
As soon as I heard the JoJo music, I knew you were a man of culture.
the jojos intro really just put the cherry on top thank you so much
Simple, elegant, and straight to the point. Thank you very much sir.
Very useful my friend
this is a great video for grasping the crux and basis of these theories! try putting 'simplified' or something of the sort in the title so more people can find it. loved it.
I was looking for the Ricardian Model in relation to debt/tax policy but this was really helpful as well!
i was looking for richardian model but instead i got jojos music theme
Brilliant, clear, elegant.
Liked and subscribed.
This is brilliant stuff! Helped me understand this thing in 4:47 mins flat.
Isn’t it comparison advantage not absolute advantage?
Nicely explained.
This was very very helpful, thank you!
thank you for the easy explanation
Great Video
Perfect explanation! Thank you very much! It was very helpful!
Second explanation seems weird, Germany have comparative advantage for both cars and sausages, say: Germany produce both: total cost : 2000 + 1000 = 3000 Hours, better than USA produce only cars and Germany produce sausage, which cost 3500 hours.
In the least 2slides it shows Germany needs 20 h to product 1 unit of car USA needs 25h, how come he said UAS has advantage on this ?
Very helpful! Keep up the good work.
Who can help me which one is better suited to explain trade between nations Ricardo's or HO theory and why
That's not a Ricardian model. You just explained Smiths theory of absolute advantage.
Very helpful, thank you!
Amazing explanation. Thank you very much. Liked, :x
Great work ..
Very helpfull! Thank you
Very Helpful, Thanks man!
I understood, thanks 👍
Thank you so much ❤
Good content, mate! Why don't you post more?
Very helping!
Thank you!!
THANK UUUUUU
However, if Germany produces all the sausages and all the cars, they need only 3000 hours, which is the best solution...
at 3.20 in the video, isn't the calculation for opportunity cost wrong? Germany should be producing cars and USA sausages.
Why Germany was producing sausage was the essence of the explanation of comparative advantage which means when a country has absolute advantage of the other in the production of the goods in question. I hope that helps
you the man!
thanks !
I thought the model had to do with the impact of deficit spending on real interest rates !?!?!?
tq
lets be honest we all know germany should have a advantage in producing cars. And instead of sausages you could give USA riots or police brutallity. The absolut advantage would be enormous.
this is german propaganda
your german accent sucks but i like this video
typical american comment
bitte nochmal auf deutsch
bis morgen früh
bist du deutscher?
this is just supply side and does not take into demand. so the model is a not applicable in the real world. also the examples you have shown are very confusing. you moved from Adam smiths absolute advantage to comparative advantage and moving the figures, it would be better to make a single example. plus this model doesn't tell you anything in reality. the standard trade model is the model applicable only.
Momin Nz You must have skipped the parts in your economics courses that require you to respect the use of models, ceteris paribus, and the assumption of rational human behavior for economic studies. Economic application requires our respective economic qualities and experiences to realize that these economic tools being taught are just starting points for us to use them on this very complicated human behavior discipline.
Im sure I have not missed any part. The point I'm trying to explain is that these models are not applicable in real life. means they are pretty much useless. from a learning stand point they are fine. In reality the models are very complex its just like e.g you cannot follow 1 economic theory such as mercantilism or capitalism. Thanks.