Trade and Technology: The Ricardian Model - Faculty
Trade and Technology: The Ricardian Model - Faculty
Trade and Technology: The Ricardian Model - Faculty
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<strong>Trade</strong>: Application II (cont.)<br />
International Commercial Policy<br />
<strong>The</strong> <strong>Ricardian</strong> <strong>Model</strong><br />
In comparison, sales per employee in China were only<br />
$13,500 in apparel <strong>and</strong> $9,000 in textiles in 1999.<br />
Thus, the U.S. was 7 times more productive in apparel<br />
<strong>and</strong> 16 times more productive in textiles. Hence, the<br />
U.S. had an absolute advantage in these products.<br />
Why did the U.S. then import so much of its textiles <strong>and</strong><br />
apparel from Asia, including China?<br />
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