David Ricardo

Born in London on April 19, 1772, David Rica is the third son of 17 children. His parents were a great success, and his father was a wealthy merchant banker who earned a lot of money at the London Stock Exchange. When he was 14 years old, Ricardo joined his father's career and successfully mastered economic problems. But in 1793 he was robbed of his legacy by his parents. As he married Quaker, he began his career as a stock broker. He continued his ability as a member of the stock exchanges he gained the support of famous bankers.

Adam Smith, a classical economics of David Ricardo and his disciples, focused on material resources to define the factors of production and discussed the distribution of cost and value among these factors. Adam Smith and David Ricardo call the "cost factor" the cost of use. Labor force - manpower used for production. Technical and marketing expertise is also included. Wages paid to other people and all income from their own labor are wages. Labor can also be classified as an employee's physical and mental contribution to the production of goods.

Many economists have their own intellectual property obligations against the labor value theory of Adam Smith and David Ricardo. They proposed to contribute and advance labor theory of value while building the foundation for the revolutionary idea inherent in the latter economist (most famous Karl Marx). At that time, the theory of Smith and Ricardo had policy implications and caused discussions on economic issues. Their labor value theory also helps the development of economic law.

David Ricardo pioneered a comparative advantage and opposed the theory of absolute advantage in Adam Smith's "national wealth". In the theory of comparative advantage, David Ricardo pointed out that it is necessary to produce and export goods and services with relatively higher yields than other countries, and to import goods and services with relatively high yields from other countries (Mahoney et al. 1998). This theory represents productivity based on technical differences in each country.

After Adams Miss, there are many other economists who made a significant contribution to this theory. The most important is David Ricardo's competitive advantage theory. Ricardo (1817) advocated his theory by solving problems in absolute superiority theory. In other words, what if a country has an absolute advantage over both products? Ricardo believes that better countries should produce the most advantageous products. Other countries should focus on the most disadvantaged areas. Even if the country does not have any advantages, you can benefit from international trade. After Ricardo there are a number of international competitiveness theories that Heckscher and Olin's element awards theory in the early 20th century have a big influence on international trade.