Limitations of Ricardian Comparative Cost theory ↓
For considerable period the theory of comparative costs formulated by David Ricardo was the most acceptable explanation of the international trade. However, Ricardo's theory was subjected to number of criticisms.
Following are the important limitations of Ricardian Comparative Cost Theory.
1. Restrictive Model
Ricardo's Theory is based on only
Saturday, 5 February 2011
Criticism Limitations of Ricardian Comparative Cost Theory
Posted on 17:29 by Unknown
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