Paul R Krugman Economia Internacional Pdf |verified| Direct
Introduces the concept of comparative advantage . It proves that trade benefits all participating countries, even if one country is absolutely more efficient at producing everything.
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Before Krugman, the dominant model for explaining trade was the , which argued that countries export goods that use their abundant factors of production (e.g., capital-rich countries export capital-intensive goods). However, Krugman noticed a flaw in this logic: most international trade actually takes place between countries with similar resources (e.g., Sweden and the U.S. exchanging cars). Introduces the concept of comparative advantage