497 Theory of Comparative Advantage

Chen Beiming said in a sonorous and powerful voice that the reason why we oppose globalization and why we are wary of the Belt and Road Initiative is because our research on competitive advantages is too shallow.

As soon as this sentence came out, the atmosphere in the venue suddenly froze, and everyone's expressions were varied, some were disdainful, some were surprised, some were expected and excited, and of course, some people were thoughtful.

Chen Beiming continued to speak: "The advantage we are talking about is actually the absolute advantage. For example, you are better than me in financial management, you are a professional, so you have an absolute advantage over me in financial management, I compare financial management with you, I can't compare to you, the two of us go together to compete, to grab customers, customers must only choose you, right? Because you're better than me!

Why are we worried about globalization, mainly because we are worried that globalization will make us lose our advantage, what advantage is the absolute advantage, Absolute- advantage!

Xia Guo's color TV manufacturing technology is stronger than that of Namei,So Xia Guo has an absolute advantage over Namei in color TV manufacturing,So everyone is nervous when they hear about the Belt and Road Initiative,Just like Dean Ogawa Shihao was vigilant just now,The Belt and Road is up,Your Xia Guo's color TV must not be crushed all the way,Then your beautiful color TV - drink the northwest wind!

So, do absolute advantages and absolute disadvantages really determine the division of labor between people, or the trade relations between countries?

At first glance, this seems to be a logical order.

You manage money better than me, and of course you are the one in our two-person team. Xia Guo will produce color TVs than Namei, of course, Xia Guo exports color TVs to Namei, right?

Everybody thinks that's the case, people think so, so do our researchers, and so do our theories.

But in fact, if we think about it carefully, this reasoning cannot be established.

You are 1 point better than me in financial management, but you are 5 points better than me in selling products, so are you doing financial management or sales or both?

My answer is: for the sake of the overall good, you can only reluctantly cut your love and let me manage my finances, while you concentrate on marketing.

You're better at managing money than I can do, but you're better at selling products. Leave your finances to me, and you'll be able to free up your time for marketing.

In other words, your comparative advantage is marketing, and mine's comparative advantage is financial management.

Our division of labor is based on comparative advantage, not absolute advantage.

Comparative advantage!

Comparative advantage!

Comparative advantage!

Say the important thing three times!

It's a comparative advantage, not an absolute advantage!

This is the theme of my keynote speech today -- comparative advantage and globalization, and peace and the global division of labor!

Why is this happening?

Because your time and energy are limited. Even though you can do everything better than me, you can't do everything yourself, can you?

Of course, you can choose to do everything yourself, but then you will get less benefit than if you were working with me.

In the same way, although Xia Guo has an absolute advantage over Nami in the production of color TVs, he has an absolute advantage in computer production. Therefore, in the trade between Xia and Nabei, Xia will export computers to Namei, and Namei will export color TVs to Xia.

The trade relationship between the two countries is based on comparative advantage rather than absolute advantage.

The concept of comparative advantage tells us that for a country or individual who is strong in all aspects, the smart thing to do is not to rely on strength, attack from all sides, and do everything in every way, but to spend limited time, energy, and resources where it does best.

Conversely, a country or individual who is vulnerable in all respects does not have to feel sorry for itself and complain about its innate inadequacies. You know, the resources of the strong are also limited. For its own benefit, the strong must set aside territory for the weak. The essence of the theory of comparative advantage is that we Xia people say that we are born with talent and must be useful. ”

On this occasion, Chen Beiming put the famous scholar David on the earth? Ricardo's masterpiece "Principles of Political Economy and Taxation" put forward the famous idea of comparative cost trade.

He first used easy-to-understand language and examples to explain to everyone what comparative advantage is, and then began to discuss it in large paragraphs of professional terms, which shocked the guests and experts present in a few clicks.

Although most of the guests who are here today are experts and scholars from countries along the Belt and Road, Saudi Arabia and the United States and the West, as well as several other Western countries, are represented, so this is a very appropriate opportunity to promote comparative advantages.

As soon as the theory of comparative advantage came out, many problems and difficulties in the world could actually be easily solved, and although it could not cure all diseases, many problems could at least be solved with ideas and theoretical basis.

No way, who said that the world does not have Ricardo and his theory of comparative cost trade - there may be similar views, but it is a pity that they have not been able to make an impact and have not appeared in the mainstream international academic circles.

Before he finished speaking, the experts and guests who probably understood what the theory of comparative advantage was, became excited, and couldn't hold back, so they excitedly interrupted Chen Beiming on the spot and asked: "Mr. Chen, do you have any books to discuss this theory?" ”

"Of course." Chen Beiming nodded.

Then, he took out his mobile phone and dialed a number, and after a while, Haruko walked briskly with a few staff members, everyone holding several bundles of professional books that had just been printed, all of which were "Comparative Cost Trade".

The views of this book are based on Ricardo's "Principles of Political Economy and Taxation", but it is not exactly the same, because Ricardo's theory has been put forward for too long, and some places are not perfect, and later many scholars have put forward more perfect theories to supplement, Chen Beiming has enriched all the theories of later scholars, so this monograph of "Comparative Cost Trade" is very perfect, almost impeccable, for the current wave of globalization, and the Belt and Road Initiative proposed by the Beiming Research Institute can make a perfect theoretical explanation.

"This is the theory I just said, if you are interested, you can take a look."

Chen Beiming stood up, took the books from Haruko's hand, and handed them out to everyone one by one.

Of course, it's all Chinese.

As for the other party can't understand it, sorry - Chinese will be an international language in the future, at least Chen Beixi's research will be written in Chinese, you don't even know Chinese, what research do you still do? How else do you understand the world's most advanced theory of comparative advantage?

You can only figure it out on your own!

Chen Beiming picked up a monograph and looked at Xiaochuan Shihao: "Dean Xiaochuan Shihao, do you want to have a copy too?" ”

Ogawa Shihao's face was a little ugly.

As soon as Chen Beiming's theory of comparative advantage came out, all his theories and opposition foundations collapsed with a bang.

So from this point of view, he really wants to walk away, but he is also a scholar, a real expert, and a scholar's greatest hobby is to learn all the theories in the world, and then integrate them and put forward his own theories!

Therefore, he gritted his teeth, endured his dissatisfaction and said, "Since everyone has a copy, then give me a copy too!" ”