Spanish Translator Services presents the word Ventaja comparativa of our Spanish to English financial dictionary. Spanish term or phrase: ventaja comparativa. English translation: Comparative advantage. Entered by: Irene Cudich. Spanish term or phrase: ventaja comparativa. English translation: Comparative advantage. Entered by: Irene Cudich.


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Haberler implemented this opportunity-cost formulation of comparative advantage ventaja comparativa introducing the concept of a production possibility curve into international trade theory.

Ventaja comparativa | Spanish to English |

Ventaja comparativa developments in the new trade theorymotivated in part by the empirical shortcomings of the H—O model and its inability to explain intra-industry tradehave provided an explanation for aspects of trade that are not accounted for by comparative advantage.

Norman [18] have responded with weaker generalizations of the principle of comparative advantage, in which countries will only tend to export goods for which they have a comparative advantage.

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  • Letter V - Spanish to English Dictionary of Finance Terms
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  • Ventaja comparativa

Adding commodities in order to have a smooth continuum of goods is the major insight of ventaja comparativa seminal paper by Dornbusch, Fisher, and Samuelson. In fact, inserting an increasing number of goods into the chain of comparative advantage makes the gaps between the ratios of the labor requirements negligible, in which case the three types of equilibria around any good in the original model collapse to the same outcome.

It notably allows for transportation costs to be incorporated, although the framework remains restricted to two countries. Deardorff argues that the insights of comparative advantage remain valid if the theory is restated in terms of averages across all commodities.


His models provide multiple insights on the correlations between vectors of trade ventaja comparativa vectors with relative-autarky-price measures of comparative advantage.

What has become to be known as the "Deardorff's general law of comparative advantage" is a model incorporating multiple goods, and which takes into account tariffs, transportation costs, and other obstacles to trade. Alternative approaches[ edit ] Recently, Y.

Shiozawa succeeded in constructing a theory of international value in the tradition of Ricardo's cost-of-production theory of value. Many countries; Many commodities; Several production techniques for a product in a country; Input trade intermediate goods are freely traded ; Durable capital goods with constant efficiency during a predetermined lifetime; No transportation cost extendable to positive cost cases.

In a famous comment McKenzie pointed that "A moment's consideration will convince one that Ventaja comparativa would be unlikely to produce cotton cloth if the cotton had to be grown in England.

Letter V - Spanish to English Dictionary of Finance Terms

In view of the new theory, no physical criterion exists. The search of cheapest product ventaja comparativa achieved by world optimal procurement. Thus the new theory explains how the global supply chains are formed.

In practice, governments restrict international trade for a variety of reasons; under Ulysses S. Grantthe US postponed opening up to free trade until its industries were up to strength, following the ventaja comparativa set earlier by Britain.

The empirical works usually involve testing predictions of a particular model. For example, the Ricardian model predicts that technological differences in countries result in differences in labor productivity. The differences in labor productivity in turn determine the comparative advantages across different countries.

Testing the Ricardian model for instance involves looking at the relationship between relative labor productivity and international trade patterns. A country that is relatively efficient in producing shoes tends to export shoes. Even if we could isolate the workings of open ventaja comparativa from other processes, establishing its causal impact also remains complicated: Considering the durability of different aspects of globalization, it is hard to assess the sole impact of open trade on a particular economy.

Daniel Bernhofen and John Brown have attempted to address this issue, by using a natural experiment of a sudden transition to open trade in a market economy. They focus on the case of Japan.

The Japanese economy indeed developed over several centuries under autarky and a quasi-isolation from international trade but was, by the midth century, a sophisticated market economy with a population of 30 million.