COMPARATIVE ADVANTAGE IN THE GENERALIZED SCHEME OF MANOILESCU

The comparative advantage has been studied from various perspectives, focusing solely on partial efforts such as labor force. Some researchers, such as Manoilescu, have attempted to establish a more rigorous theoretical model by observing total efforts. Moreover, the above-mentioned researcher looked at the comparative advantage from the perspective of national interest, which we shall nevertheless not deal with in our present study. By trying to identify, in a simple barter exchange, an algorithm of the relations between each entity’s individual advantages and the total advantage, we can achieve a coherent analytical understanding of the exchange act in a real-empirical negotiation.