Development needs the manager. If managers, in turn, are to be effective, they should understand the context of the development process in which they operate. And development economists should aid that understanding. This paper is a step in that direction.

The theory of comparative advantage is the oldest – and most fundamental – principle in international economics. Its empirical significance, however, changes with the times. Given the intensification of the forces of globalisation, the importance of comparative costs should now be revisited...