Comparative Advantage Theory | Ricardian Theory of International Trade by Vidhi Kalra

Hey guys! In this video I've tried my best to put this complicated topic in a simple and clear manner for you. Incase you haven't watched my video on Absolute Advantage, would request you to watch that before for a clearer understanding of this video. I have attached the link below! Good luck!
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Follow me on Instagram: 5_minute_economics
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Link to the Absolute Advantage Theory-
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#ComparativeAdvantage #RicardianTheory #RicardosTheory #TheoryofInternationalTrade #TradeTheories #DavidRicardo #UPSC #UPSCPrelims #CompetitveExamsPrep #BriefEconomics #Summary #EasyEconomics #SimpleEconomics #Class12thEconomics #GradLevelEconomics #UgcNetPrep #HelpfulEconomics #InterestingEconomicConcepts#GraduationEconomics #PostGraduationEconomics #EasyEconomics #TopicsOfEconomics #ConceptsOfEconomics #NetPrep #VidhiKalra #5MinuteEconomics #5MinEconomics #5MinEco #5MinuteEconomicsByVidhiKalra #FastLearningEconomics #EconomicNews #CurrentNews #IndianNews #CurrentEconomicNews #Class11thEconomics #BALevelEconomics #BoardLevelEconomics #EconomicsShortVideo #NetGuidance #EasyNetPrep #EconomicsTheorem #EconomicsMadeEasier #EconomicsShortVideo #BcomLevelEconomics #BBAEconomics #UPSCPreparation #EconomicsTheorem #EconomicsMadeEasier #EconomicsShortVideo #ImpEcoTopics #SetPrep #SetExamination #SetExaminationGuide #GrowthEconomis #Ecotrics #MacroEconomics #MicroEconomics #EconomicsVideos #UPSC2021 #UPSC2020

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i bet ... if we were taught in schools like this , we will never forget any concepts . starting with cakes level and slowly to country level , thats a magnificant method. 🙌🙌🙌

[@5MinuteEconomics]

That is so sweet of you! Thank you so much 😊

[@Deevnesh5191]

I cant thank you enough!! You've summarised what my lecturers took 3 hours to explain in a manner of 10 minutes! Thank you!!!

[@5MinuteEconomics]

So happy to know 😊

[@bhoomika6505]

Not even lying you explain complicated concepts so well. Came from Absolute advantage theory video to Comparative cost theory. Thankyou so much 💗

[@5MinuteEconomics]

Glad it was helpful! Keep watching! :D

[@rishabhrastogi5225]

kash ye explanation mujko koi mid term me mil jati .................. wonderfully explained maam ye explanation sun ke toh mereko padhane ka maan kar raha hai i think i willl be an economist in near future thank u maam u earned my respect

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[@5MinuteEconomics]

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[@RajeevSingh-dw7xj]

You made this topic very easy. Clear and to the point explanation.

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Your knowledge,elegance and grace while teaching is commendable❤️

[@5MinuteEconomics]

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[@prathamkumar6632]

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[@5MinuteEconomics]

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[@5MinuteEconomics]

Happy to help :D

[@anusuachowdhury2544]

Again I'm here before my exams, and again I'm so glad! Thank you so much, your videos always save me in the last moment :P

[@priyodarshini_banerjee]

thanks a lot for making me understand this critical topic so easily i found it very hard until I watched it ❤️🥺

[@HanishFatima]

Wow amazingly described the complete concept Thank you very much ❤

[@vinualex1]

Absolutely the last minute tip overturns the complexity of this topic... Good work 👌👌

[@5MinuteEconomics]

Thank you so much ☺️ Glad to know!

[@shubhambang3870]

What a fantastic explanation you are making topics so easy 8:07

[@angiemenapa]

I am a future business owner and Commerce student who hasn't enrolled in uni yet; but a colleague, friend and business partner asked me to read up on Comparative Advantage for him and get back with my findings. My undergrad background is Nursing, so yes, I did find it initially difficult to switch from medical science to economics. 😁 But your explanations, Ma'am, are helpful. I followed you on Instagram as well. Thank you and regards from Bolivia, central South America.

[@5MinuteEconomics]

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[@sandhyaaaaaaaaaaa]

So so so thankful to you mam for coming up quality content in short duration. The last graph made it even more easier.

[@5MinuteEconomics]

So happy to know! Keep watching 😊

[@rathorenisha359]

Thank you so much mam for wonderful explanation 😊

[@RajathHM]

Mam pscy after seeing all KZbin Vedios for this topic now I got understand, I am fan of u mam ⚡️❤️

[@odiacumeconomics6834]

I just say what an explanation, this is called real economics,less time n more study, thanks mam

[@5MinuteEconomics]

Thank you so much! Keep watching ☺️

[@avantikasaklani]

Why didn't I found you earlier, my life could have been so easy🥺 watching this a night before my exam. But now i have so much confidence that i will attempt and score full marks in this particular topic✨ ❤❤❤

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So happy to know that! Keep watching

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OMG!! I LOVE YOU SO MUCH THANK YOU!!😍😍😍

[@raaganshkaushik1347]

yaar ye kitni awesome hai.....

[@jishnuc9043]

The last chart method to find comparitive advantage was brilliant! Thanks for that tip! Since you are good at baking, i have to say the chart method of the video was the Icing on the cake🎂

[@5MinuteEconomics]

Haha that was bang on! Thank you for the feedback ☺️

[@renumalik0002]

🤦‍♀️ Its not icing on cake, its Cherry on Cake

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Economics in 5min quite impressive and your teaching skills are amazing ..❤❤

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[@ashifdocs17]

i m not going to forget this concept whole life.....thank u so much

[@5MinuteEconomics]

Haha so happy to know! Keep watching 😊

[@its_ishasheth]

The example I had in my textbook was so complicated that I decided to skip it but after watching the video things got cleared thankyou Tomorrow is my economics paper and i am not fully prepared for it. 😢

[@studywithabdulwaheed3390]

I am from Karachi Pakistan. Excellent explanation. I have been teaching for the last 20 years BUT the way you explain Comparative advantage (especially the graph at the end) is remarkable. Keep up your excellent work. Wish you good luck 👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻

[@5MinuteEconomics]

Thank you so much for your kind words! ☺️

[@vrishtigupta5274]

i have my international economics exam tomorrow and your videos are a life saver!!!

[@5MinuteEconomics]

I’m so glad to know that! Thank you so much! ❤️ Good luck for your exam!

[@adedare9208]

This was super simple and useful. Thank you!

[@5MinuteEconomics]

Glad to know that! You’re welcome 😊

[@vikrantmassey3745]

Can't thank you enough. Absolute genius..💫

[@5MinuteEconomics]

Happy to know! Keep watching 🥰

[@himanshusomani8579]

Perfect timing was just looking for it ! 😉

[@5MinuteEconomics]

Glad you found it then! 🥰

[@sujatagajmer8815]

Thank you mam . You've explained so nicely. M never going to forget this concept now.

[@5MinuteEconomics]

Thank you so much :D

[@imsonal]

Thanks a lot ma'am helped me a lot ✨

[@pratimaupadhyay7922]

Thanku so much.....❤

[@mukeshrai5499]

Very effective....very informative..u r like a life saver for students like us. Thank you ma'am.. keep growing ahead..🥰🤗

[@5MinuteEconomics]

Thank you so much 😀

[@Fathimasuzna-dc3nr]

thankyou i was so confused , now i understood it

[@kanishkakhunteta]

You explained it so well .tomorrow is my exam and i am going to write whatever you said in this video. And if you add captions it will be more helpful.

[@user-eu9nm2fu8q]

very helpful and great examples used thank you

[@5MinuteEconomics]

Glad I could help you! You’re welcome 😊

[@divyagopal7626]

Wow !....that's so great,,,i'll surely recommend your videos ...Great work!

[@5MinuteEconomics]

Happy to know!

[@thatdevika9377]

Thankyou for this video..very helpful!

[@5MinuteEconomics]

So glad to know! Keep watching ❤️

[@renumalik0002]

This was the best video lecture till date 💕

[@5MinuteEconomics]

Thank you so much 😀

[@sapnakanojia5974]

Sooo beautifully you explain this concept ...thanks ma'am❤❤❤

[@5MinuteEconomics]

Thank you so much :)

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I just fall in love (with economics)

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You are awesome mam you made us realise that economics is easier that chit chatting.. and I literally mean it 🤍... You are worth million dollars awards 💜 keep glowing MA'AM ❤️

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That is so sweet of you :D

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thankyou💯💕

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Thank you so much mam for presenting such a useful video...the way u teach is just mind blowing ...keep continuing your service as long as possible

[@5MinuteEconomics]

It's my pleasure :)

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[@balramyadav5652]

Thanks alot ma'am for providing valuable lectures in less time

[@5MinuteEconomics]

Always happy to help! 😊

[@saurabhgoyal6801]

Great....it will be very useful for international trade fianace exam...thanks a lot vidhi.

[@5MinuteEconomics]

Thank you so much :D

[@shallu_navneetian]

Thankyou so much tomorrow is my exam nd it will be my life saver😊

[@jyothisbabugeorge2328]

Another wonderful lecture by our rockstar teacher.Maam you're videos deserve more views.Dear Vidhi ma'am can you please do 5 min videos on ugc net economics topics.

[@5MinuteEconomics]

Thank you so much ☺️ I have done one already. You can have a look at it- kzbin.info/www/bejne/aJzcemN4r86JiM0

[@jyothisbabugeorge2328]

@@5MinuteEconomics Ah ok ma'am.I was sad ma'am because I dint get reply.Now I am happy I will see.Thank u dear teacher.

[@5MinuteEconomics]

@@jyothisbabugeorge2328 Sorry might have missed it 😊

[@nlvalli1962]

Very nice, explained in a clear n simple way

[@5MinuteEconomics]

Thank you so much 😊

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Buhht deenno ke bad Apka video dekhe Yai such mei outstanding h

[@5MinuteEconomics]

Thanks a lot :)

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Fantabulous mam...even I watched many videos and heard many teachers' teaching I got a complete satisfaction with urs only 👍 Please upload videos on all the topics in macro economics.

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Thank you so much :D

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Thank you so much Di..Because of you i covered nearly 12 big topics in one night and topped the exam.. Thank you Di!😊

[@5MinuteEconomics]

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@@5MinuteEconomics One more semester to go...i hope i keep up with you and all the topics🙂

[@5MinuteEconomics]

@@hamzahusain1890 Good luck :)

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I have economics optional in my state psc exam. Your lectures are very helpful. Thank you 🙏🏻

[@5MinuteEconomics]

Glad to know! Keep watching 😊

[@sarthakbose9669]

You explained it really well!

[@5MinuteEconomics]

Thank you so much :)

[@altafkarim8670]

Money is neither a material to work upon nor a tool to work with.thanks 😊

[@wardanaseer3145]

I wanna to know that what ratio suitable for both is it 2 : 0.125

[@taoheedchowdhury5239]

Pretty much handy for undergrade students. Just watched your video before studying the Ricardian Model in the eve of final exam!

[@5MinuteEconomics]

Thank you so much! Glad to know :)

[@soumalyamallick7438]

I understood it nicely. Thank you Mam

[@5MinuteEconomics]

Thank you so much 😀

[@Abhi-sg2sw]

Thank you

[@Darkang111sam]

very helpful video. thanks a lot.

[@5MinuteEconomics]

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[@ECONOMICS265]

Well explained ma'am If you look up on the literature of comparative advantage of trade, basically we find two author's work. As you have rightly pointed out, it was initially David Ricardo (1817) who came up with this theory and later by Gottfried Haberler in 1936. Ricardo's theory was based on the LABOUR THEORY OF VALUE. Under the labour theory of value, the price or value of a commodity depends exclusively on the amount of labour going into the production of the commodity. This implies that 1. That either labour is the only factor of production or labour is used in the same fixed proportion in the production of all commodities 2. Labour is homogeneous Since neither of these two assumptions are true, the explanation of Ricardo's comparative advantage faced a huge problem. In order to solve this problem, Haberler in 1936 explained the theory of comparative advantage based on the opportunity cost theory thus giving credence to the applicability of this theory. So what you have explained in this video is Haberler's comparative advantage theory based on opportunity cost and not Ricardo's comparative advantage theory based on labour theory of value. Thank you

[@parthkadam516]

Bhai ye itna bada likhu to aaram se merko 15 marks mil jay 😂😂

[@thesrinathkamath]

wow, beautifully explained!

[@5MinuteEconomics]

Glad you liked it!

[@VAIBHAV-fl6dl]

Ricardo did not base his comparative advantage theory on opportunity cost, he used labour theory for simplification purposes. It was Haberler in 1936 who explained comparative advantage theory in terms of opportunity cost.

[@anmoldedha4089]

yes, he presents it with the help of the labour theory of value, but the problem is labour theory was itself get rejected in the early 20th century then haberler comes and explains using the opportunity cost.

[@marryrosealbania468]

What is the difference of scolper Samuelson and ricardian theory?

[@niks1363]

Ma'am, Can you tell me the difference depends on the countries trade in Ricardian model is of Specialization or Technology? Ma'am, I am waiting for your answer...

[@poovaiahvk3993]

Thank you Ma'am🙏

[@5MinuteEconomics]

You're welcome :)

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Thank you🥰

[@shubhipathak2000]

Applies for short run period?

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So sweet ❣️and the explanation is amazing

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Thank you so much 😀

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Extremely helpful ❤

[@5MinuteEconomics]

Thank you 😊

[@AbhishekPandey-wv6bc]

Thank you so much ma'am...

[@5MinuteEconomics]

You're welcome :)

[@sarveshjadhav4958]

The diagram at the end, what if the difference was 10 between the numbers on X - axis? Will it be considered over the Y - axis numbers as it's difference is 8 and X - axis difference is 10?

[@pavanading8166]

It was very helpful for my Ug exam thank u so much 🤗🤗😊..

[@5MinuteEconomics]

I’m glad I could help! Good luck ❤️

[@teenachhatria4939]

Do we always check in y-axis as a shortcut to know which nation has comparative advantage in which product?

[@tharunreddykstharunteddyks1447]

Once again thank you so much madam ❤, for the explanation.

[@5MinuteEconomics]

You're welcome :)

[@piriyadharshineesethuraman3476]

So clear,thanks

[@5MinuteEconomics]

Thank you so much 😀

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thank you so much for this!!!!!

[@5MinuteEconomics]

You’re welcome 😊 Keep watching ❤️

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Very helpful you are best teacher🔥

[@5MinuteEconomics]

Glad you think so! :D

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East or west u r the best

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OMG that's osm. I am ca student and i am afraid of economic... But you change the whole game😊..it May be possible that...David ricardo also enjoyed this vedio😁😁😜

[@5MinuteEconomics]

Hahaha! Only if he’s watching from the heaven 😛 Thank you for your appreciation 🥰

[@jerin4808]

I was so confused before watching.. thanks ✨

[@5MinuteEconomics]

Thank you so much :)

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Great ma'am Thank you ☺️

[@5MinuteEconomics]

Most welcome 😊 Keep watching :)

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So happy to see a fellow Indian creator make something actually useful, thankyou

[@5MinuteEconomics]

Thank you 😊 Glad to know!

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@@5MinuteEconomics please make a video on Marshall Lerner Condition and J Curve Effect

[@5MinuteEconomics]

@@bhargav7476 Surely in future!

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Awesome Teaching Qualities ❤

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Thank you so much :)

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Very helpful and very well explained thank you mam😊

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Thank you so much :)

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One thing I knew about you that you are good baker,,!😊

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Came across to your channel accidentally but it's worth it! Love from Pakistan 🇵🇰

[@5MinuteEconomics]

Thank you so much for your appreciation :)

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great explanation in less time

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Thank you so much :D

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By the way this professor is pretty cute 😅

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thanks, your videos are very helpful during these online semesters and exams.

[@5MinuteEconomics]

I’m so happy to know! Thank you so much 😊

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@@5MinuteEconomics i had trade written exam today and have viva tomorrow...keep up the good work.... love from Bangladesh

[@5MinuteEconomics]

@@EnigMagnum Thank you so much 😊 Good luck for your paper 👍🏻

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Thankyou ma'am ☺

[@5MinuteEconomics]

Most welcome 😊

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Are thank you mam. .... I liked your video ... Very usefull to exam ago...

[@5MinuteEconomics]

Thank you 😊 Keep watching!

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is ok .mam.🙏

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THANKS MAAM

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Very helpful ❤

[@5MinuteEconomics]

I'm so glad!