Problem
In David Ricardo's original example of comparative advantage in his Principles of Political Economy, written in 1817, Portugal possesses an absolute advantage in both the production of cloth and the production of wine. But England has a comparative advantage in the production of cloth, while Portugal's comparative advantage is in wine production. According to Ricardo, an English political economist, England should specialize in the production of cloth and Portugal in wine making.
a. Was Ricardo's advice self-serving?
b. Knowing that light manufacturing, such as clothing and textile production, has led most industrialization processes, would you have advised 19th-century Portugal to specialize in wine making? (Radical )
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.