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Absolute Cost Advantage Theory of International Trade (in Hindi)
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In this lesson we will discuss Absolute cost advantage theory given by Adam Smith.

Swêêt Ãrõrã
M.sc(Hons.School)Economics🎓🎓📚 3 years experience📖📖 Passionate for teaching📚📚and singing🎤🎤

U
Unacademy user
sir sound Ka issue h
Thank you so much ma'am, plz ma'am make some more lecturers on international economics.
Swêêt Ãrõrã
6 months ago
You are most wlcm and I'll try to upload more lessons as soon as possible.
please make videos on theorems of international trade.. just like. stopler Samuelson theorem,factor price equalization theorem etc.
Swêêt Ãrõrã
8 months ago
OK will try to upload it within 2-3 days.
thank u so much mam for this course too
Swêêt Ãrõrã
6 months ago
You are wlcm.
A
excellent explanation
  1. THEORIES OF INTERNATIONAL TRADE


  2. 1 Absolute cost advantage theory Comparative cost advantage theory


  3. 3 Reciprocal demand theory 4 Opportunity cost theory


  4. 5 Heckscher-Ohlin theory of international trade


  5. ABSOLUTE COST ADVANTAGE THEORY


  6. This theory was given by Adam smith in his book "Wealth of Nations" in 1776.


  7. It States that international trade will be beneficial only when two nations are having absolute absolute differences in the cost of production


  8. of the commodity in which they specialise.


  9. ASSUMPTIONS:- 2*2*1 model 1 2 Complete specialisation 3 Perfect competition 4 Full employment


  10. 5 Constant returns to scale 6 No transportation cost 7 Perfect mobility of factors within the nation but not outside the nation.