Economics: Article comparison Name Institutional Affiliation Although the comparative advantage is a popular economics theory there are intricacies surrounding the real definition of this term. Adam Smith as the father of economics was the first to support the theory. The term comparative advantage has evolved over the years and recent years have seen modern versions that have been developed to add on the theory by Adam Smith. This study will particularly assess the comparisons and the contrast between two journal articles Institutionalism And New Trade Theory: Rethinking Comparative Advantage And Trade Policy by Thomas Palley and Adam Smith’s Theory Of Absolute Advantage And The Use Of Doxography In The History Of Economics by Reinhard Schumacher. The thesis of this research pointed to the fact that Schumacher focuses more on the reconstruction of the initial idea by Adam Smith while Palley takes a different approach that was aimed at providing between both articles. One of the most notable differences between the two is the fact that Schumacher’s article focuses more on the reconstruction of the initial ideas of comparative advantage as coined by Adam Smith while Paller’s article focuses on the recreation of a new idea that is tailored towards globalization. Also it is clear that Schumacher’s article focuses on the reconstruction while Paller’s article delves more on critiquing Adam Smith’s ideas. There is a consensus in both articles that the theory of comparative advantage that was coined by Adam Smith is important in shaping the modern views on comparative advantage. References Palley Thomas. (2008). Institutionalism and new trade theory: rethinking comparative advantage and trade policy. Journal of Economic Issues 42 195. Schumacher Reinhard. (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 54-80. [...]
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.