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This article compares Ricardo's statements on the Law of Comparative Advantage (LCA) with modern versions. It interprets Ricardo's LCA as a practical guide or as a piece of useful commercial advice for commodity traders, and argues that, contrary to modern versions, Ricardo's LCA does not constitute a logical basis for international specialisation of production. It contends that Ricardo's case for international specialisation is based on absolute advantage, not comparative advantage. It concludes that, if 'LCA' is taken to mean the LCA as found in modern textbooks, then Ricardo did not have a Law of Comparative Advantage. |
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