The Latent Absolute Advantage Of The Comparative Advantage In Theories Of International Trade

Abstract

The absolute advantage and comparative advantage are the basic concepts of the international economics. Up till now, the popular understanding about them is that absolute advantage is the special case of the comparative advantage. This view has been dominant in all books related to the field of international economics. However, the comparative advantage by nature is the absolute advantage. Generally, comparative advantage is only particular case of absolute advantage. In other words, comparative advantage has the latent absolute advantage. It is the opposite view of the traditional one on absolute and comparative advantage in the field of international trade theories and it constructs the content of this paper.