What are the main points of Li Jia's "comparative advantage theory"

The main points of Ricardo's comparative advantage theory;

The basis of international trade is the relative difference (not absolute difference) of production technology and the resulting relative cost difference. Every country should concentrate on producing and exporting its own products with "comparative advantages" and importing its own products with "comparative disadvantages" in accordance with the principle of "taking the maximum of two advantages and taking the minimum of two disadvantages".

The theory of comparative advantage trade explains the basis and benefits of trade on a more general basis and greatly develops the theory of absolute advantage trade.

Extended data

Historical position:

Ricardo's theory of comparative advantage reveals the basis of highly abstract international division of labor under the condition of complete free trade from the perspective of cosmopolitanism.

Ricardo's theory of comparative advantage has played an important role in promoting the free trade policy of the British industrial bourgeoisie, forming an international division of labor centered on Britain, and then the capitalist mode of production has become the main mode of production in the world, which has promoted the high development of world productivity.

Ricardo's theory of comparative advantage embodies the demand of British industrial bourgeoisie to improve profits, and embodies the development direction of market economy and the role of value law in the international arena. However, in the formation of the pattern of international division of labor centered on Britain, it was achieved by launching commercial wars, forcing other countries to accept free trade policies through colonial rule and fierce competition with low prices and high quality.

Baidu Encyclopedia-Comparative Advantage Theory