Why Did Ricardo Think That International Trade Was Based on Comparative

question 25

Essay

Why did Ricardo think that international trade was based on comparative advantage while internal (domestic) trade was based on absolute advantage?

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Definitions:

Need for Respect

An intrinsic desire for acknowledgment and esteem from others, considered a fundamental human need and a crucial aspect of social interactions and personal development.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, starting from basic physiological needs to self-actualization.

Belonging

The feeling of being accepted and included within a social, professional, or community group.

Survival Needs

Basic requirements necessary for maintaining life, such as food, water, shelter, and safety.