The absolute advantage theory is explained as: international trade is created based on the absolute difference of nature and gainable advantage among countries, the existence of absolute advantages and by which the difference of labor productivities and productive costs are resulted is the reason of creating international division of labor and international trade.
Comparative advantage, which was raised by David Ricardo, the Economist of Britain, is explained that the two countries are able to produce two kinds of products; one has different absolute advantage for these two products, the country is recommended to specialized produce and export the product with higher advantage and import the product with lower advantage, instead of producing them all. For the same reason, if a country is inferior to produce two kinds of products, it is also recommended to produce the less inferior one and import the more inferior one. Thereby the two trading countries are all benefitted through specializing production and exportation of inferior products, which is the division of comparative advantage principle meaning “choosing the better one from two good ones, choosing the less bad one from two bad ones”.
Hai Wen described it in his book, “In the theories of Adam Smith and David Ricardo, labor force is the major input; Thereby they think that the cost of products is depending on the labor productivities, which again are based on production technology. Adam Smith and David Ricardo created the Classical Trading Theory by technical difference explaining trade basement”.
说明一下,我翻译的“两优择其重,两劣择其轻”可能不太准确,请你再请教一下其他高人.
上面英文是认真翻译过的,因是报告,不敢胡写.