The Choice by Russell Roberts Assignment Example | Topics and Well Written Essays - 1000 words

The Choice by Russell Roberts - Assignment ExampleHe claims that as a nation, the States kindle specialize in producing televisions but it is much fall apart for them to concentrate their resources on producing slap-ups or work which they are really good at and leave the production of goods, like television, to early(a) countries (Japan). This way they (Americans) better utilize their time and resources for making more silver than as compared to Japan (Roberts 10). The reverse is also consecutive for Japan, which may or may not be good at making drugs, which Americans are good at.Roberts provides a convincing argument on the theory of comparative advantage. I agree with Roberts that instead of defend ones own industries and businesses, the trade should be shared to even the weaknesses and strengths of the worlds economies. If America is good at making drugs and can fetch a higher price for them then it would be better to concentrate resources to market drugs to other countrie s. It should create a niche by developing drugs, (or any other products) to maximize its resources.Since time and fight are scarce resources in economic terms, it is logical that a countrys authority makes the right choice to salve trade regulations to help its industries to swap products. The real deal is the ability of the country to find the products that should be interchange to other countries and chooses products which are cheaper in comparison. This is necessary for the theory of comparative advantage to work for an economy to piddle profit from the swap.Roberts makes this claim based on Ricardos theory, assuming that other countries of the world are voluntary to trade as well and that all economies of the world are stable in their production and resources. However, what happens when an economy, A, is not stable? What will happen if the other country, B, is not willing to trade due to lack of money or lack of product to sell to A? In such a scenario, I swear the theory of comparative advantage will not wor of well.