Principles of Macroeconomics / Unit 17 MAC 1612 short lesson, about 20 seconds
Dynamic Comparative Advantage
Captions available
The idea
Where advantage comes from learning, skill and scale rather than from climate or endowment, it can be created and it can be lost. Countries are not fixed in what they are good at.
In practice
An industry can be built up over a generation and overtaken in less.
Where people slip
This is the strongest premise available to the infant-industry argument, and the anchor supplies it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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