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Read the required journal articles by Schumacher (2012) and Palley (2008) regarding the theory of comparative advantage. In a critical essay, compare and contrast Smith’s original theory as indicated in the Schumacher (2012) article. What, in contrast, is Palley’s (2008) observation regarding the modern view of comparative advantage? Differentiate these views and support your findings with additional academic references. Readings: Palley, T. I. (2008). Institutionalism and new trade theory: Rethinking comparative advantage and trade policy. Journal of Economic Issues (Association for Evolutionary Economics), 42 (1), 195-208. Schumacher, R. (2012). Adam Smith’s theory of absolute advantage and the use of doxography in the history of economics. Erasmus Journal for Philosophy and Economics, 5(2), 5480

Read the required journal articles by Schumacher (2012) and Palley (2008) regarding the theory of comparative advantage. In a critical essay, compare and contrast Smith’s original theory as indicated in the Schumacher (2012) article. What, in contrast, is Palley’s (2008) observation regarding the modern view of comparative advantage? Differentiate these views and support your findings with additional academic references.

Readings:

Palley, T. I. (2008). Institutionalism and new trade theory: Rethinking comparative advantage and trade policy. Journal of Economic Issues (Association for Evolutionary Economics), 42 (1), 195-208.

  • Schumacher, R. (2012). Adam Smith’s theory of absolute advantage and the use of doxography in the history of economics. Erasmus Journal for Philosophy and Economics, 5(2), 5480

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