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Misconception About Comparative Advantage Zhu Ruijie Sun Jiawei Shi Chongwei.

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Presentation on theme: "Misconception About Comparative Advantage Zhu Ruijie Sun Jiawei Shi Chongwei."— Presentation transcript:

1 Misconception About Comparative Advantage Zhu Ruijie Sun Jiawei Shi Chongwei

2 Productivity and Competitiveness Free trade is beneficial only if your country is strong enough to stand up to foreign competition. Free trade is beneficial only if your country is strong enough to stand up to foreign competition. Productivity and competitiveness are two keys to a successful trade. Without them, a country can hardly develop, like the old China empire. Productivity and competitiveness are two keys to a successful trade. Without them, a country can hardly develop, like the old China empire. Generally speaking, those businessmen enjoy using pauper labor to rise their productivity and strengthen competitiveness by exploitation. Generally speaking, those businessmen enjoy using pauper labor to rise their productivity and strengthen competitiveness by exploitation.

3 The Pauper Labor Argument Foreign competition is unfair and hurts other countries when it is based on low wages. Some people may think so. Foreign competition is unfair and hurts other countries when it is based on low wages. Some people may think so. But in our opinion, foreign competition is also a kind of resource that can bring local people lots of benefits. In many place, villagers work in factories in order to gain more money than farming and they are all freewill, Although, compared with what they expend, it seems that it ’ s unfair to them. At least in China, it ’ s a unchangeable fact. But in our opinion, foreign competition is also a kind of resource that can bring local people lots of benefits. In many place, villagers work in factories in order to gain more money than farming and they are all freewill, Although, compared with what they expend, it seems that it ’ s unfair to them. At least in China, it ’ s a unchangeable fact.

4 Exploitation Trade exploits a country and makes it worse off if its workers receive much lower wages than workers in other nations. Trade exploits a country and makes it worse off if its workers receive much lower wages than workers in other nations. As we all know that if you hope your product keep it ’ s competitiveness, exploitation is indispensable. It determines whether the product will be popular or not. A perfect work must be born with good exploitation. Like NDS, beside those normal buttons, there are two screens in it and one of them is used to touch. This exploitation make the handy video game machine different and successful. As we all know that if you hope your product keep it ’ s competitiveness, exploitation is indispensable. It determines whether the product will be popular or not. A perfect work must be born with good exploitation. Like NDS, beside those normal buttons, there are two screens in it and one of them is used to touch. This exploitation make the handy video game machine different and successful. All above shows how important exploitation is. All above shows how important exploitation is.

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