in 1975, wage levels in South Korea were roughly 5% of those in the United States. It is obvious that if the United Stat
Posted: Wed Mar 09, 2022 8:33 am
in 1975, wage levels in South Korea were roughly 5% of those in
the United States. It is obvious that if the United States had
allowed Korean goods to be freely imported into the United States
at that time, this would have caused devastation to the standard of
living in the United States, because no producer in that country
could possibly compete with such low wages. Discuss this assertion
in the context of the Ricardian model of comparative advantage.
the United States. It is obvious that if the United States had
allowed Korean goods to be freely imported into the United States
at that time, this would have caused devastation to the standard of
living in the United States, because no producer in that country
could possibly compete with such low wages. Discuss this assertion
in the context of the Ricardian model of comparative advantage.