The Comparative Advantage with Short-Term Protectionism

The comparative advantage
With
Short-term protectionism

Module:EC-228 student number:584796
Name :xiaoran DENG

Contents

Introduction ……………………………………………………2

Comparative advantage ……………………………………… 2
How to found comparatives advantages ………………………… 4
A numerical example …………………………………………4

Dynamic comparative advantage ……………………………5
An example for infant industry…………………………………… 6

Short- term protectionism …………………………………… 9

Conclusion …………………………………………………… 9

Reference ………………………………………………………10

Introduction
In light of comparative advantage theory, discussion is made about
Short-term trade protectionism can be supported by the theory of comparative advantage. This paper will be divided into two parts to explain the comparative advantage theory and short-term trade protectionism. Then find out the relationship between the comparative advantage and short-term trade protectionism.
Comparative advantage is the theory can improve the yield and expand the competitor’s advantage. The comparative advantage have lots of modules. In this paper will focus on basic theory about comparative advantages and how to find advantage comparative, after that introduce the dynamic comparative advantage in a dynamic situation and the different with the traditional comparative advantage.
The short-term trade is the policy to limit the foreign country’s industry import, but it is beneficial to home country’s export trade. In contrast, the government can use short-term trade policy to control the export trade to reduce the trade conflict; On the other hand, increase the comparative advantages playing an important role in the trade arena.

Comparative advantage

Suppose one country than in the production of both commodities are in another country is definitely a disadvantage, but as long as the two countries at a disadvantage in the production of inferior goods in varying degrees, the dominant position on commodity production in both countries, with