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DQ 1
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During 1817, David Ricardo showed the astonishing perception of comparative advantage. “As per the rules of comparative advantage, even when one country is less capable compared to (has an absolute disadvantage with regards to) the other country in the manufacture of both goods, there’s still a basis for mutually advantageous trade.” Salvatore (2005, p.33.) What does it mean for a nation to have an absolute advantage or disadvantage in the manufacture of a great? What’s a comparative advantage? How can you describe Ricardo’s conclusion that there will be any cause for business? Would your description persuade a mercantilist to participate in global trade?
DQ 2
What is the difference between portfolio investment and FDI? What are the current trends in FDI? How does FDI influence change within an organization’s global operations?
