Comparative Advantage Theory | Ricardian Theory of International Trade by Vidhi Kalra
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- เผยแพร่เมื่อ 10 ก.ย. 2024
- Hey guys! In this video I've tried my best to put this complicated topic in a simple and clear manner for you. Incase you haven't watched my video on Absolute Advantage, would request you to watch that before for a clearer understanding of this video. I have attached the link below! Good luck!
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Follow me on Instagram: 5_minute_economics
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Link to the Absolute Advantage Theory-
• Absolute Advantage The...
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#ComparativeAdvantage #RicardianTheory #RicardosTheory #TheoryofInternationalTrade #TradeTheories #DavidRicardo #UPSC #UPSCPrelims #CompetitveExamsPrep #BriefEconomics #Summary #EasyEconomics #SimpleEconomics #Class12thEconomics #GradLevelEconomics #UgcNetPrep #HelpfulEconomics #InterestingEconomicConcepts#GraduationEconomics #PostGraduationEconomics #EasyEconomics #TopicsOfEconomics #ConceptsOfEconomics #NetPrep #VidhiKalra #5MinuteEconomics #5MinEconomics #5MinEco #5MinuteEconomicsByVidhiKalra #FastLearningEconomics #EconomicNews #CurrentNews #IndianNews #CurrentEconomicNews #Class11thEconomics #BALevelEconomics #BoardLevelEconomics #EconomicsShortVideo #NetGuidance #EasyNetPrep #EconomicsTheorem #EconomicsMadeEasier #EconomicsShortVideo #BcomLevelEconomics #BBAEconomics #UPSCPreparation #EconomicsTheorem #EconomicsMadeEasier #EconomicsShortVideo #ImpEcoTopics #SetPrep #SetExamination #SetExaminationGuide #GrowthEconomis #Ecotrics #MacroEconomics #MicroEconomics #EconomicsVideos #UPSC2021 #UPSC2020
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i bet ... if we were taught in schools like this , we will never forget any concepts . starting with cakes level and slowly to country level , thats a magnificant method. 🙌🙌🙌
That is so sweet of you! Thank you so much 😊
I cant thank you enough!! You've summarised what my lecturers took 3 hours to explain in a manner of 10 minutes! Thank you!!!
So happy to know 😊
Not even lying you explain complicated concepts so well. Came from Absolute advantage theory video to Comparative cost theory. Thankyou so much 💗
Glad it was helpful! Keep watching! :D
Your knowledge,elegance and grace while teaching is commendable❤️
Thank you so much :)
I am a future business owner and Commerce student who hasn't enrolled in uni yet; but a colleague, friend and business partner asked me to read up on Comparative Advantage for him and get back with my findings. My undergrad background is Nursing, so yes, I did find it initially difficult to switch from medical science to economics. 😁 But your explanations, Ma'am, are helpful. I followed you on Instagram as well.
Thank you and regards from Bolivia, central South America.
Thank you so much! Glad to know this ❤️
I am from Karachi Pakistan. Excellent explanation. I have been teaching for the last 20 years BUT the way you explain Comparative advantage (especially the graph at the end) is remarkable. Keep up your excellent work. Wish you good luck 👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻
Thank you so much for your kind words! ☺️
Went through many channels yet none beat this!!! Thank you for the valuable input to the viewers
So happy to know! Thank you so much 😊
Why didn't I found you earlier, my life could have been so easy🥺 watching this a night before my exam. But now i have so much confidence that i will attempt and score full marks in this particular topic✨ ❤❤❤
So happy to know that! Keep watching
i have my international economics exam tomorrow and your videos are a life saver!!!
I’m so glad to know that! Thank you so much! ❤️ Good luck for your exam!
The example I had in my textbook was so complicated that I decided to skip it but after watching the video things got cleared thankyou
Tomorrow is my economics paper and i am not fully prepared for it. 😢
Thank you so much Di..Because of you i covered nearly 12 big topics in one night and topped the exam..
Thank you Di!😊
Oh wow! Congratulations to you! :D
@@5MinuteEconomics One more semester to go...i hope i keep up with you and all the topics🙂
@@hamzahusain1890 Good luck :)
The last chart method to find comparitive advantage was brilliant! Thanks for that tip!
Since you are good at baking, i have to say the chart method of the video was the Icing on the cake🎂
Haha that was bang on! Thank you for the feedback ☺️
🤦♀️ Its not icing on cake, its Cherry on Cake
Well explained ma'am
If you look up on the literature of comparative advantage of trade, basically we find two author's work. As you have rightly pointed out, it was initially David Ricardo (1817) who came up with this theory and later by Gottfried Haberler in 1936. Ricardo's theory was based on the LABOUR THEORY OF VALUE. Under the labour theory of value, the price or value of a commodity depends exclusively on the amount of labour going into the production of the commodity. This implies that
1. That either labour is the only factor of production or labour is used in the same fixed proportion in the production of all commodities
2. Labour is homogeneous
Since neither of these two assumptions are true, the explanation of Ricardo's comparative advantage faced a huge problem.
In order to solve this problem, Haberler in 1936 explained the theory of comparative advantage based on the opportunity cost theory thus giving credence to the applicability of this theory.
So what you have explained in this video is Haberler's comparative advantage theory based on opportunity cost and not Ricardo's comparative advantage theory based on labour theory of value.
Thank you
Bhai ye itna bada likhu to aaram se merko 15 marks mil jay 😂😂
I just say what an explanation, this is called real economics,less time n more study, thanks mam
Thank you so much! Keep watching ☺️
have been trying to get hold of this topic from many months!! i just got with ur explaination, Thanks a tonne...!!😇
Happy to help :D
Absolutely the last minute tip overturns the complexity of this topic... Good work 👌👌
Thank you so much ☺️ Glad to know!
kash ye explanation mujko koi mid term me mil jati ..................
wonderfully explained
maam ye explanation sun ke toh mereko padhane ka maan kar raha hai
i think i willl be an economist in near future
thank u maam
u earned my respect
Economics in 5min quite impressive and your teaching skills are amazing ..❤❤
Thank you so much 😊
Another wonderful lecture by our rockstar teacher.Maam you're videos deserve more views.Dear Vidhi ma'am can you please do 5 min videos on ugc net economics topics.
Thank you so much ☺️ I have done one already. You can have a look at it-
th-cam.com/video/2kyI0BziVRk/w-d-xo.html
@@5MinuteEconomics Ah ok ma'am.I was sad ma'am because I dint get reply.Now I am happy I will see.Thank u dear teacher.
@@jyothisbabugeorge2328 Sorry might have missed it 😊
So so so thankful to you mam for coming up quality content in short duration. The last graph made it even more easier.
So happy to know! Keep watching 😊
thankyou i was so confused , now i understood it
So happy to see a fellow Indian creator make something actually useful, thankyou
Thank you 😊 Glad to know!
@@5MinuteEconomics please make a video on Marshall Lerner Condition and J Curve Effect
@@bhargav7476 Surely in future!
Money is neither a material to work upon nor a tool to work with.thanks 😊
Thank you!! Regards from Poland.
Can't thank you more, the best ever explanation and I just understood it in one go!! Thanks a lot!!!
Glad to know ☺️
I have economics optional in my state psc exam. Your lectures are very helpful. Thank you 🙏🏻
Glad to know! Keep watching 😊
yaar ye kitni awesome hai.....
Perfect timing was just looking for it ! 😉
Glad you found it then! 🥰
This is my first video on youTube when I watched it on normal speed.
You are intelligent
You are beautiful✨
You are smart and So On.
Please upload videos for english speaking too. 😊
Hahaha happy to know! Thank you for your appreciation! :)
OMG that's osm. I am ca student and i am afraid of economic... But you change the whole game😊..it May be possible that...David ricardo also enjoyed this vedio😁😁😜
Hahaha! Only if he’s watching from the heaven 😛 Thank you for your appreciation 🥰
What a fantastic explanation you are making topics so easy 8:07
very helpful and great examples used thank you
Glad I could help you! You’re welcome 😊
Ricardo did not base his comparative advantage theory on opportunity cost, he used labour theory for simplification purposes. It was Haberler in 1936 who explained comparative advantage theory in terms of opportunity cost.
yes, he presents it with the help of the labour theory of value, but the problem is labour theory was itself get rejected in the early 20th century then haberler comes and explains using the opportunity cost.
Again I'm here before my exams, and again I'm so glad! Thank you so much, your videos always save me in the last moment :P
Thank you very much, Sam! I appreciate your kind words by Sam Panchal from United Kingdom.
My pleasure Sam! 🥰
Do we always check in y-axis as a shortcut to know which nation has comparative advantage in which product?
Mam pscy after seeing all TH-cam Vedios for this topic now I got understand, I am fan of u mam ⚡️❤️
Thank you mam . You've explained so nicely. M never going to forget this concept now.
Thank you so much :D
i m not going to forget this concept whole life.....thank u so much
Haha so happy to know! Keep watching 😊
It's helpful to me thanks
If you been my professor in college, I never miss even each class of yours 🙂😊
Haha thank you so much! Keep watching 😊
@@5MinuteEconomics Off course I will....
Watching this while taking online exams lol, thank you for the easy explanation!
Hahah! You're welcome :)
Can't thank you enough. Absolute genius..💫
Happy to know! Keep watching 🥰
Thank you so much mam for presenting such a useful video...the way u teach is just mind blowing ...keep continuing your service as long as possible
It's my pleasure :)
You made this topic very easy. Clear and to the point explanation.
Wow amazingly described the complete concept
Thank you very much ❤
It was very helpful for my Ug exam thank u so much 🤗🤗😊..
I’m glad I could help! Good luck ❤️
You are awesome mam you made us realise that economics is easier that chit chatting.. and I literally mean it 🤍... You are worth million dollars awards 💜 keep glowing MA'AM ❤️
That is so sweet of you :D
I am sure this will help me with my MPSC mains..!! ✨
I hope so! Good luck :)
You explained it so well .tomorrow is my exam and i am going to write whatever you said in this video.
And if you add captions it will be more helpful.
Came across to your channel accidentally but it's worth it! Love from Pakistan 🇵🇰
Thank you so much for your appreciation :)
Very good and informative video 👏
Big fan from bhutan mam
You teach very well. ❤
Thank you for your love 💕
Dear iam from pakistan 🇵🇰 belive me apky lectures bohat he achy hoty hen its just wawooooo God bless you
Thank you so much 😊
Ma'am ap itna accha kese padha lete ho..,, my english and economics both are improving simultaneously
Hahah! Thank you :D
Bohot aache se samjh agaya didi short and simple 🥳🤎
Thank you so much 😀
I just fall in love (with economics)
Buhht deenno ke bad Apka video dekhe Yai such mei outstanding h
Thanks a lot :)
Di pls explain ppp theory of international trade....... U did amazing di, all u say it will helpful and easy to understand in 5 min.
Thank you 😊 Will try doing so.
thanks a lot for making me understand this critical topic so easily
i found it very hard until I watched it ❤️🥺
East or west u r the best
Thankyou so much tomorrow is my exam nd it will be my life saver😊
One thing I knew about you that you are good baker,,!😊
Hahah thanks!
When Vidhi Ma'am uploads a new lecture video..
Students be like - "Ab maja aayega na bhidu"
kids these days 🤦♂️🤦♂️
@@parthjoshi3181 😂😂🤦🏻♂️
@@parthjoshi3181 🤷♀️🤷♀️
Ankush 😂😂
ya it's true
From the absolute cost advantage theory lec again in request of david recardo 1817 comparative cost advantage theory Vidhi should start a bakery of famous brownies because she has comparative advantage brownies over pies 😅😅
Jokes apart again thanks you so much 😀 ❤
By the way this professor is pretty cute 😅
Thank you 😊
😒 padle bhai 😒😒😒
Hmm bhai 😍
@@5MinuteEconomics
Welcome
@@mrryu8801 😅😂😂😂
Madam pls upload all chapter related international economics
Will try doing so!
Thanks so much Mam
You’re welcome 😊
Understand I am prepared for tomorrows exam thanks 😊
Yayy! :)
Thank you so much mam for wonderful explanation 😊
For your last tip regarding whoever produces more on the y-axes has the comparative advantage - if you change the product from laptops to cotton, your tip would suggest that India has the competitive advantage for cotton but the numbers from before reveal that it is Nepal who has the competitive advantage. Therefore, isn't it the absolute advantage that is visible on the axes? And how are we then supposed to figure out the competitive advantage through the diagram?
Thank youuuuuuuuuuuuuuu for saving my 20 markssss😩🙏🙏🙏🙏🙏🙏🙏❣
Sooo beautifully you explain this concept ...thanks ma'am❤❤❤
Thank you so much :)
Pretty much handy for undergrade students. Just watched your video before studying the Ricardian Model in the eve of final exam!
Thank you so much! Glad to know :)
btw my name is also aryan i really feel this video lots of love and thank you so much
Happy to know :D
Thanks alot ma'am for providing valuable lectures in less time
Always happy to help! 😊
my mind was like , " ree bete mauj krdi"
crystal clear explanation Vidhi Di
Haha 😂 Glad to know that!
wow, beautifully explained!
Glad you liked it!
haha... as you said this one is the difficult one... where you took 9 mins to complete this topic... and I took 20-25 mins to understand this... confusing but got it! :D ...Thank you... :)
Glad it helped! :)
You actually explained Haberle's theory instead of David Ricardo's Comparative Advantage theory.
Comparative advantage theory was introduced in 1817, it was based on the valuation of a commodity based on the labor time required to produce it. Haberle's theory was based on Opportunity cost.
Thus in 1936, Haberle introduced ‘Opportunity cost’ concept to explain the theory of comparative advantage. Opportunity cost is the value of the forgone option.
As per Haberle's theory, cost of a commodity is the amount of a second commodity that must be
given up in order to release enough resources to produce one extra unit of the first commodity.
In the first (Brownie/Pie) example, Vidhi would produce pies since she's more efficient in producing pies compared to Aryan, her Comparative advantage in producing pies is 3 times (30pies:10pies),
In the second example (India/Nepal), India has Absolute advantage in producing both commodities (Laptop and Cotton), but India's Comparative advantage in producing Laptop is 10/2 (or 5 times) and for producing Cotton is 20/16 (or 1.25 times), since it's Comparative advantage is greater(or Absolute Disadvantage is smaller) in producing Laptop, it would produce Laptops and Nepal would produce Cotton as per the Comparative Advantage theory.
Great....it will be very useful for international trade fianace exam...thanks a lot vidhi.
Thank you so much :D
Very nice, explained in a clear n simple way
Thank you so much 😊
Thank You ma'am. You teach very clearly.
Thank you so much :D
OMG!! I LOVE YOU SO MUCH THANK YOU!!😍😍😍
Once again thank you so much madam ❤, for the explanation.
You're welcome :)
Very effective....very informative..u r like a life saver for students like us.
Thank you ma'am.. keep growing ahead..🥰🤗
Thank you so much 😀
Fantabulous mam...even I watched many videos and heard many teachers' teaching I got a complete satisfaction with urs only 👍
Please upload videos on all the topics in macro economics.
Thank you so much :D
Really useful thank you 🎉
You’re welcome 😊
I was so confused before watching.. thanks ✨
Thank you so much :)
Hello mam can you please explain why you have taken 10 by 20 in India for producing one ton of cotton and 20 by 10 in producing one laptop just a confusion mam....
The diagram at the end, what if the difference was 10 between the numbers on X - axis? Will it be considered over the Y - axis numbers as it's difference is 8 and X - axis difference is 10?
This was the best video lecture till date 💕
Thank you so much 😀
Thanks a lot ma'am helped me a lot ✨
Thank you
You’re welcome 😊
thanks, your videos are very helpful during these online semesters and exams.
I’m so happy to know! Thank you so much 😊
@@5MinuteEconomics i had trade written exam today and have viva tomorrow...keep up the good work....
love from Bangladesh
@@EnigMagnum Thank you so much 😊 Good luck for your paper 👍🏻
This was super simple and useful. Thank you!
Glad to know that! You’re welcome 😊
Wow !....that's so great,,,i'll surely recommend your videos ...Great work!
Happy to know!
I understood it nicely. Thank you Mam
Thank you so much 😀
Hello mam...
Mam ess theory m etna complicat kyu kiya h... Qki muje toh esme clearly mention ho rha h...( india = 20cotton & 10 laptop
Nepal = 16 cotton & 2 laptop )
Toh nepal laptop kam bna pa rha h pr vo cotton jada bna rha h or india laptop jada bna rha h nepal se toh dono country ko jb sath m.milkr trade krna h toh usse vo product banna chahiye jisse vo kam time m sahi se or jada ache se bna paye except another 2 country.... ( india ko laptop & nepal ko cotton).
What is the difference of scolper Samuelson and ricardian theory?
TQ Mam :)
You’re welcome 😊