Comparative Advantage Author’s Name Institutional Affiliation Comparative Advantage Globalization of world major industries has propelled the world’s largest institutions to consider this planet a global village. Information and research move as quickly across continents as never did in the past. The industries are emerging at a faster pace under the influence of foreign culture tastes research and development. The pace of industrial development will remain fast in the foreseeable future and only those countries and industries will survive which accept this change and move with it. International trade is just one part of this global network of industries. International trade refers to trade of regular goods services technology and capital which different industries execute across border. The inclination of today’s world economy towards free trade among countries over the whole world has helped in flourishing global trade. These agreements call for unrestricted trade between countries. In an extreme case show the applicability of free trade globally. On the other hand Palley (2008) advocates countries to proceed with caution and to be prepared for adverse outcomes. References Gomory R. (2000). Global Trade and Conflicting National Interest. Cambridge MA. Palley T. (2008). Institutionalism and New Trade Theory: Rethinking Comparative Advantage and Trade Policy. Journal Of Economic Issues 42(1) 195-208. http://dx.doi.org/10.1080/00213624.2008.11507121 Samuelson P. (2004). Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization. Journal Of Economic Perspectives 18(3) 135-146. http://dx.doi.org/10.1257/0895330042162403 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) 54. http://dx.doi.org/10.23941/ejpe.v5i2.105 Smith A. (1978). Early draft of part of the wealth of nations. In R. Meek D. Raphael & P. Stein The Glasgow edition of the works and correspondence of Adam Smith Volume 5 (pp. 562-582). Oxford: Oxford University Press. [...]
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.