Comparative Advantage Theory | Ricardian Theory of International Trade by Vidhi Kalra

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. 🙌🙌🙌

[@5MinuteEconomics]

That is so sweet of you! Thank you so much 😊

[@NWillkiwi]

I cant thank you enough!! You've summarised what my lecturers took 3 hours to explain in a manner of 10 minutes! Thank you!!!

[@5MinuteEconomics]

So happy to know 😊

[@bhoomika6505]

Not even lying you explain complicated concepts so well. Came from Absolute advantage theory video to Comparative cost theory. Thankyou so much 💗

[@5MinuteEconomics]

Glad it was helpful! Keep watching! :D

[@elowkaisiikape6176]

Went through many channels yet none beat this!!! Thank you for the valuable input to the viewers

[@5MinuteEconomics]

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[@ezazahmed8118]

Your knowledge,elegance and grace while teaching is commendable❤️

[@5MinuteEconomics]

Thank you so much :)

[@studywithabdulwaheed3390]

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 👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻

[@5MinuteEconomics]

Thank you so much for your kind words! ☺️

[@angiemenapa]

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.

[@5MinuteEconomics]

Thank you so much! Glad to know this ❤️

[@sreesai334]

have been trying to get hold of this topic from many months!! i just got with ur explaination, Thanks a tonne...!!😇

[@5MinuteEconomics]

Happy to help :D

[@vinualex1]

Absolutely the last minute tip overturns the complexity of this topic... Good work 👌👌

[@5MinuteEconomics]

Thank you so much ☺️ Glad to know!

[@jishnuc9043]

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🎂

[@5MinuteEconomics]

Haha that was bang on! Thank you for the feedback ☺️

[@renumalik0002]

🤦‍♀️ Its not icing on cake, its Cherry on Cake

[@vrishtigupta5274]

i have my international economics exam tomorrow and your videos are a life saver!!!

[@5MinuteEconomics]

I’m so glad to know that! Thank you so much! ❤️ Good luck for your exam!

[@odiacumeconomics6834]

I just say what an explanation, this is called real economics,less time n more study, thanks mam

[@5MinuteEconomics]

Thank you so much! Keep watching ☺️

[@avantikasaklani]

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✨ ❤❤❤

[@5MinuteEconomics]

So happy to know that! Keep watching

[@hamzahusain1890]

Thank you so much Di..Because of you i covered nearly 12 big topics in one night and topped the exam..
Thank you Di!😊

[@5MinuteEconomics]

Oh wow! Congratulations to you! :D

[@hamzahusain1890]

@@5MinuteEconomics One more semester to go...i hope i keep up with you and all the topics🙂

[@5MinuteEconomics]

@@hamzahusain1890 Good luck :)

[@prathamkumar6632]

Can't thank you more, the best ever explanation and I just understood it in one go!! Thanks a lot!!!

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Economics in 5min quite impressive and your teaching skills are amazing ..❤❤

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Thank you so much 😊

[@sandhyaaaaaaaaaaa]

So so so thankful to you mam for coming up quality content in short duration. The last graph made it even more easier.

[@5MinuteEconomics]

So happy to know! Keep watching 😊

[@UMARADO-s4k]

Thanks so much, dear. I enjoy watching your videos. Take love from Nigeria 🇳🇬

[@jyothisbabugeorge2328]

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.

[@5MinuteEconomics]

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

[@jyothisbabugeorge2328]

@@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.

[@5MinuteEconomics]

@@jyothisbabugeorge2328 Sorry might have missed it 😊

[@rishabhrastogi5225]

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

[@defaulter6206]

chal be mote

[@raaganshkaushik1347]

yaar ye kitni awesome hai.....

[@ECONOMICS265]

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

[@parthkadam516]

Bhai ye itna bada likhu to aaram se merko 15 marks mil jay 😂😂

[@bhargav7476]

So happy to see a fellow Indian creator make something actually useful, thankyou

[@5MinuteEconomics]

Thank you 😊 Glad to know!

[@bhargav7476]

@@5MinuteEconomics please make a video on Marshall Lerner Condition and J Curve Effect

[@5MinuteEconomics]

@@bhargav7476 Surely in future!

[@anusuachowdhury2544]

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

[@ajaykalawatikala6118]

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😁😁😜

[@5MinuteEconomics]

Hahaha! Only if he’s watching from the heaven 😛 Thank you for your appreciation 🥰

[@himanshusomani8579]

Perfect timing was just looking for it ! 😉

[@5MinuteEconomics]

Glad you found it then! 🥰

[@its_ishasheth]

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. 😢

[@divyagopal7626]

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

[@5MinuteEconomics]

It's my pleasure :)

[@ashifdocs17]

i m not going to forget this concept whole life.....thank u so much

[@5MinuteEconomics]

Haha so happy to know! Keep watching 😊

[@HanishFatima]

Wow amazingly described the complete concept
Thank you very much ❤

[@RajathHM]

Mam pscy after seeing all TH-cam Vedios for this topic now I got understand, I am fan of u mam ⚡️❤️

[@user-eu9nm2fu8q]

very helpful and great examples used thank you

[@5MinuteEconomics]

Glad I could help you! You’re welcome 😊

[@vikrantmassey3745]

Can't thank you enough. Absolute genius..💫

[@5MinuteEconomics]

Happy to know! Keep watching 🥰

[@sujatagajmer8815]

Thank you mam . You've explained so nicely. M never going to forget this concept now.

[@5MinuteEconomics]

Thank you so much :D

[@shubhambang3870]

What a fantastic explanation you are making topics so easy 8:07

[@gagankochar0212]

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. 😊

[@5MinuteEconomics]

Hahaha happy to know! Thank you for your appreciation! :)

[@RajeevSingh-dw7xj]

You made this topic very easy. Clear and to the point explanation.

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Happy to know!

[@saurabhgoyal6801]

Great....it will be very useful for international trade fianace exam...thanks a lot vidhi.

[@5MinuteEconomics]

Thank you so much :D

[@Qanwaz100]

Came across to your channel accidentally but it's worth it! Love from Pakistan 🇵🇰

[@5MinuteEconomics]

Thank you so much for your appreciation :)

[@sapnakanojia5974]

Sooo beautifully you explain this concept ...thanks ma'am❤❤❤

[@5MinuteEconomics]

Thank you so much :)

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Dear iam from pakistan 🇵🇰 belive me apky lectures bohat he achy hoty hen its just wawooooo God bless you

[@5MinuteEconomics]

Thank you so much 😊

[@nlvalli1962]

Very nice, explained in a clear n simple way

[@5MinuteEconomics]

Thank you so much 😊

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It was very helpful for my Ug exam thank u so much 🤗🤗😊..

[@5MinuteEconomics]

I’m glad I could help! Good luck ❤️

[@sanketbaheti]

Watching this while taking online exams lol, thank you for the easy explanation!

[@5MinuteEconomics]

Hahah! You're welcome :)

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I have economics optional in my state psc exam. Your lectures are very helpful. Thank you 🙏🏻

[@5MinuteEconomics]

Glad to know! Keep watching 😊

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Very effective....very informative..u r like a life saver for students like us.
Thank you ma'am.. keep growing ahead..🥰🤗

[@5MinuteEconomics]

Thank you so much 😀

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Buhht deenno ke bad Apka video dekhe Yai such mei outstanding h

[@5MinuteEconomics]

Thanks a lot :)

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thankyou i was so confused , now i understood it

[@kanishkakhunteta]

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.

[@tharunreddykstharunteddyks1447]

Once again thank you so much madam ❤, for the explanation.

[@5MinuteEconomics]

You're welcome :)

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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 ❤️

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That is so sweet of you :D

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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.

[@5MinuteEconomics]

Thank you so much :D

[@rathorenisha359]

Thank you so much mam for wonderful explanation 😊

[@PrinceAaryan-y9g]

thank u, I misses two of my classes of International trade. And those classes time span is around 2hr30mins. I just recover it with 10 mins with two of your videos.

[@5MinuteEconomics]

Amazing! Happy to help! :D

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Money is neither a material to work upon nor a tool to work with.thanks 😊

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It's helpful to me thanks
If you been my professor in college, I never miss even each class of yours 🙂😊

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@@5MinuteEconomics Off course I will....

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I was so confused before watching.. thanks ✨

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Thank you so much :)

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Are thank you mam. .... I liked your video ...
Very usefull to exam ago...

[@5MinuteEconomics]

Thank you 😊 Keep watching!

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is ok .mam.🙏

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This was the best video lecture till date 💕

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Thank you so much 😀

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Very helpful and very well explained thank you mam😊

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Thank you so much :)

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Thank you!! Regards from Poland.

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wow, beautifully explained!

[@5MinuteEconomics]

Glad you liked it!

[@taoheedchowdhury5239]

Pretty much handy for undergrade students. Just watched your video before studying the Ricardian Model in the eve of final exam!

[@5MinuteEconomics]

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Very helpful you are best teacher🔥

[@5MinuteEconomics]

Glad you think so! :D

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I understood it nicely. Thank you Mam

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Thank you so much 😀

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By the way this professor is pretty cute 😅

[@5MinuteEconomics]

Thank you 😊

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😒 padle bhai 😒😒😒

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Hmm bhai 😍

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@@5MinuteEconomics
Welcome

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So sweet ❣️and the explanation is amazing

[@5MinuteEconomics]

Thank you so much 😀

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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.

[@5MinuteEconomics]

Thank you 😊 Will try doing so.

[@OUTDOORTASTEWITHATIF]

Thank You ma'am. You teach very clearly.

[@5MinuteEconomics]

Thank you so much :D

[@adedare9208]

This was super simple and useful. Thank you!

[@5MinuteEconomics]

Glad to know that! You’re welcome 😊

[@yuepelshelkardorjitsho3308]

Big fan from bhutan mam
You teach very well. ❤

[@5MinuteEconomics]

Thank you for your love 💕

[@Paramartulsi]

Great ma'am
Thank you ☺️

[@5MinuteEconomics]

Most welcome 😊 Keep watching :)

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I am sure this will help me with my MPSC mains..!! ✨

[@5MinuteEconomics]

I hope so! Good luck :)

[@pay-back-to-society]

Hi wonderful video Vidhi..

[@ujjwalrana4595]

my mind was like , " ree bete mauj krdi"
crystal clear explanation Vidhi Di

[@5MinuteEconomics]

Haha 😂 Glad to know that!

[@balramyadav5652]

Thanks alot ma'am for providing valuable lectures in less time

[@5MinuteEconomics]

Always happy to help! 😊

[@EnigMagnum]

thanks, your videos are very helpful during these online semesters and exams.

[@5MinuteEconomics]

I’m so happy to know! Thank you so much 😊

[@EnigMagnum]

@@5MinuteEconomics i had trade written exam today and have viva tomorrow...keep up the good work....
love from Bangladesh

[@5MinuteEconomics]

@@EnigMagnum Thank you so much 😊 Good luck for your paper 👍🏻

[@teenachhatria4939]

Do we always check in y-axis as a shortcut to know which nation has comparative advantage in which product?

[@tanvir1638]

I just fall in love (with economics)

[@VAIBHAV-fl6dl]

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.

[@anmoldedha4089]

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.

[@shashankprasoon488]

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... :)

[@5MinuteEconomics]

Glad it helped! :)

[@abhishekMishra-se5lw]

Thank youuuuuuuuuuuuuuu for saving my 20 markssss😩🙏🙏🙏🙏🙏🙏🙏❣

[@dianagrace776]

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?

[@fitSarthak]

Bohot aache se samjh agaya didi short and simple 🥳🤎

[@5MinuteEconomics]

Thank you so much 😀

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Thankyou so much tomorrow is my exam nd it will be my life saver😊

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Thanks a lot ma'am helped me a lot ✨

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Awesome Teaching Qualities ❤

[@5MinuteEconomics]

Thank you so much :)

[@ch.Akhlaqahmed]

One thing I knew about you that you are good baker,,!😊

[@5MinuteEconomics]

Hahah thanks!

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Ma'am ap itna accha kese padha lete ho..,, my english and economics both are improving simultaneously

[@5MinuteEconomics]

Hahah! Thank you :D

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Very good and informative video 👏

[@5MinuteEconomics]

Thank you so much :D

[@Harshhbhatiii]

Yaar kitni awesome hai yein😌💖

[@darkking141]

Padhle bhai

[@Harshhbhatiii]

@@darkking141 😂😂pass be hogye

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Thankyou for this video..very helpful!

[@5MinuteEconomics]

So glad to know! Keep watching ❤️

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When Vidhi Ma'am uploads a new lecture video..
Students be like - "Ab maja aayega na bhidu"

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kids these days 🤦‍♂️🤦‍♂️

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Ankush 😂😂

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ya it's true

[@marryrosealbania468]

What is the difference of scolper Samuelson and ricardian theory?

[@Darkang111sam]

very helpful video. thanks a lot.

[@5MinuteEconomics]

Glad to know! ❤️

[@ShyamSingh-v1e7p]

Thank you very much, Sam! I appreciate your kind words by Sam Panchal from United Kingdom.

[@5MinuteEconomics]

My pleasure Sam! 🥰

[@khangembamkumar7274]

Great content 💯

[@Keerthana_simplelife]

Really useful thank you 🎉

[@5MinuteEconomics]

You’re welcome 😊