Re:The Decline of the U.S. Machine-Tool Industry and Prospec...
by mr_toad on Wednesday April 09, 2025 @08:43AM
(#43631417)
> But this is again something that applies to individuals rather than countries.
It applies to countries too. It’s the core argument of comparative advantage, and it’s been mainstream economic theory for over 200 years. Your argument is incomplete because you’re not considering the wages paid in other countries, and crucially, the exchange rate.
It applies to countries too. It’s the core argument of comparative advantage, and it’s been mainstream economic theory for over 200 years. Your argument is incomplete because you’re not considering the wages paid in other countries, and crucially, the exchange rate.
https://en.wikipedia.org/wiki/Comparative_advantage