Wednesday, August 27, 2014

Productive and compartive advantege in developing countries?

Productive and compartive advantege in developing countries?
http://en.wikipedia.org/wiki/Comparative_advantage

Not really sure what you are asking, but in general developing countries have not achieved economies of scale in most markets and therefore do not have a comparative advantage over other countries producing the same goods. What they sometimes will do is setup a tariff on importing those types of goods from the country with economies of scale so that they can get some more business from within their own country, build up and will in time be able to compete globally. Later they abolish the tariff and hopefully the price of said good goes down for all with another competitor in the marketplace.


I feel like I'm missing something crucial here but I hope it gives you an idea of what you were looking for.

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