Backround of the Ricardian trade theory

Definition comparative advantage

basic rationale

- within each national economy resource should be allocated to most efficient kind of product

- Free trade spurs reallocation of resources toward most efficient uses

- If each godd is produced in the most efficient way within each national economy, then total consumer wlefare incresses

Universal free trade ahs never existed (mercantilism, aermican aand german protectionim in 19th centyry)

Free trade ahs gone into reerse many times (interware framgention, reversal of bristih policy, trump)

trade liberlisation are very difficult effec (corn law, doha round failure)

alternative internaitonal trade theory (today new trade theroy) chaggence riccand trade theory.