Task 1 Comparative Advantage The basic model of comparative advantage is a static analysis of the production possibility frontier (PPF) curves of two countries that produce two goods. It measures the increase in output due to specialisation and trade. The model implies that free trade will benefit both countries. In the global economy, comparative advantage is dynamic and involves many countries and many products; therefore it is difficult to measure whom, actually gains from free trade …showed first 75 words of 2369 total…

…showed last 75 words of 2369 total…pg 34-48 Bjorgo, T.(2003) "Root Causes of Terrorism" The Norwegian Institute of International Affairs. Hufbauer, G. (2003) 'Polarization in the World Economy" Milken Institute Review, 1st Quarter, pg26-36 Kirby, A. (2003) "Viewpoint: Cancun's boost to the poor", http://news.bbc.co.uk, 15/9/2003 Krueger, A. and Maleckova, J (2003) "Education, Poverty, and Terrorism: Is There A Causal Connection?" Journal of Economic Perspectives, Macalester College. Krueger, A. and Maleckova, J (June 2003) "Seeking the Roots of Terrorism" The Chronicle Review.