What is the doctrine of absolute interest and what is comparative interest? Absolute interest?

Q: What is the difference between the doctrine of absolute interest and the doctrine of comparative interest?

Self-test 365 online school answer analysis: 1. The absolute interest theory actually refers to: in the production of a certain commodity, the labor cost of a country is lower than that of its own partner country, in labor productivity.

has an absolute advantage. Each country produces its own products in which it has an absolute advantage, and then exchanges them freely, so that each can reap the benefits of absolute benefit. The emphasis is on the fact that there is always a cost of production for a product in any country.

Lower than their own ** partner countries.

2. The core idea of the theory of comparative interests is that if the productivity of the two countries is unequal in the international division of labor, the cost of producing any commodity in country A is lower than that of country B, which is in an absolute advantage, while country B, on the contrary, its labor productivity is lower than that of country A in the production of any commodity, and it is at an absolute disadvantage. At this time, the possibility of ** between the two countries still exists, because the difference in labor productivity between the two countries is not the same in any commodity, so that the country in absolute advantage does not have to produce all products, but should concentrate on the production of goods with the greatest advantage in its own country, and the country in absolute disadvantage does not have to stop all products, but only the goods in which it is at the greatest disadvantage.

It is emphasized that if a country does not have a product that costs less than its partner country, it can choose to produce a product with a smaller difference.

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The theory of absolute interest was put forward by the British classical economist Adam Smith, who believed that every country or region has its own favorable natural resources and climatic conditions, and if all countries and regions produce according to their own favorable production conditions, and then exchange products with each other, the resources, labor and capital of each country and region will be used most effectively, and labor productivity and material wealth will be greatly improved.

Basic definitions. There is a premise for the application of the absolute interest theory - the two parties can trade their products freely, and without freedom**, without the free circulation of goods, it is impossible to obtain the benefits brought by the geographical division of labor.

Adam Smith believed that every country has absolutely favorable conditions of production for certain specific products suitable for production, and that it is beneficial for all exchange countries to specialize in production and then exchange with each other, which is the "absolute interest theory". The theory of absolute interest is one of the theoretical contents of the early theory of division of labor.

Comparative interest means that countries that are at an absolute disadvantage do not have to stop producing all products, but should only stop producing products that are at the greatest disadvantage in their own countries, and through free exchange, the countries participating in the exchange can save social labor and increase the consumption of products, and the world will also increase production and labor productivity because of free exchange.

Absolute profit is Hui Sui refers to the fact that in the production of a certain commodity, one economy has an absolute advantage in labor productivity, or the labor cost of its production is definitely lower than that of another economy. If each economy is engaged in the production of products in which it has an absolute advantage, and then exchanges them, then both sides can obtain absolute benefits through exchange, and thus the whole world can also obtain the benefits of division of labor.

Comparative Interests British classical economist David Ricardo believes that the basis for determining international interests is comparative interests rather than ambiguous absolute interests. In the international division of labor, if the productivity level of the two participating countries is not equal, the cost of producing any product in country A is lower than that of country B, which is in an absolute advantage; On the contrary, country B is inferior in labor productivity in any product to country A, and is at an absolute disadvantage. Calendar code shouting.

The struggle between Ptolemy and Buresti. In the ancient battle for penalty instruments, there were many conflicts and feuds between Ptolemy and Buresti. In many of these battles, both sides destroyed parts of their property, equipment, and buildings to ensure more benefit for themselves.

The war plan of Nazi Germany. During World War II, Duan Sui Hitler believed that the conquest of Europe through war could win the absolute interests of Germany, so he launched a series of wars without regard for the well-being of civilians and the safety of his country, resulting in hundreds of millions of deaths and injuries.

Actions of Portuguese explorers in the 15th century. In the actions of the Portuguese explorers, they were constantly looking for new ** routes and alternatives to secure their own commercial interests. During these expeditions, they often destroyed the local economy and culture, and established colonies.

A country should produce the spike liquid products that its own country is best at, that is, the products with the lowest production cost, and then exchange back those products that it is not good at with other countries, so as to greatly save labor, improve the labor allocation of production resources, and obtain absolute benefits.

Absolute superiority is also known as "absolute interest". The cost of labour in the production of a particular commodity is absolutely lower than the advantage that another country has in the production of that commodity. It was proposed by the British classical economist Adam Smith in the theory of absolute advantage.

Comparative advantage is also known as "comparative advantage" and "relative interest". A country is in a disadvantageous position in the production of both commodities and has an advantage in the production of products with a lesser disadvantage. It was proposed by the British classical economist Ricardo in the theory of comparative advantage.

Absolute superiority is also known as "absolute interest". In the production of a given commodity, the labour cost of a concession in one country is absolutely lower than the advantage in the production of that product in another country. It was proposed by the British classical economist Adam Smith in the theory of absolute advantage.

Comparative advantage is also known as "comparative advantage" and "relative interest". A country is in a disadvantageous position in the production of both commodities and has an advantage in the production of products with a lesser disadvantage.

In the world, only family affection is the most precious, the strongest, and the greatest. But sometimes, when the absolute real "monetary interests" are pulled, the family affection is often vulnerable. Sometimes, small contradictions can be magnified and irreconcilable.

A few years ago, my aunt's house was demolished and distributed to a number of suites and house foundations due to urbanization. Because of the problem of dividing the house foundation, my cousin and cousin, who had a good relationship from childhood to adulthood, also had a dispute, and my cousin was so angry that she wanted to quarrel with her cousin for divorce. Fortunately, after the painstaking persuasion of relatives, everyone re-conceded and distributed.

Finally, he finally reconciled with the old man. Judging from this matter, no matter how good the family relationship is, when real interests are involved, then it will become very fragile.

There is a relative, when the old man used his connections to let his younger son enter the local state-owned enterprise, the other eldest son had no choice but to go out to work. At that time, in fact, it was also to let the eldest son occupy more of the house foundation, and the good position was used as compensation. Many years later, the two brothers, although they were close on the surface, sometimes they would quarrel because of this when they drank, and everyone felt that the old man was unfair and suffered a loss.

When in front of money and absolute interests, family affection is often vulnerable. More often than not, they fight each other, more or less quarrel, and even do their own things. It is difficult to have few people who are calm and understand each other.

Unless the other party has absolute strength and ability, does not need the money, and gives up the money and benefits.

Both theories agree that the reason why ** occurs is based on differences in the cost of production between countries.

The difference is that the theory of absolute interest does not explain the basis of international ** among all countries in reality, especially when a country is at an absolute disadvantage in the cost of production in all sectors, and the above analysis cannot explain this situation. It can be said that one of the obvious flaws of the theory of absolute interest is that it does not explain how regions that do not have any absolute advantage to speak of participate in the division of labor and profit from it.

The theory of comparative interest makes up for this shortcoming.

Refer to the theory of absolute advantage and the theory of comparative advantage.

Settle. The theory of absolute advantage, also known as the theory of absolute cost and the theory of regional division of labor. This theory deduces the principle of division of labor between different occupations and different types of work within a country to the division of labor between countries, so as to form the theory of division of labor between different countries.

This theory analyzes the benefits of division of labor and argues that division of labor can improve labor productivity.

The reasons are: the division of labor can improve the proficiency of labor; The division of labor allows everyone to specialize in a certain job, saving time that is not directly related to production; The division of labor is conducive to invention and the improvement of production tools.

According to the theory of comparative advantage, the difference in labor productivity between the two countries is not equal in any commodity. For countries that are in absolute advantage, they should concentrate on the production of commodities with greater advantages, and countries with absolute disadvantages should concentrate on the production of commodities with less disadvantages, and then exchange with each other through international exchanges, and each other has saved labor and benefited. The core content of the theory of comparative advantage is that "two benefits are more important, and two evils are lighter".

The existence of superiority will produce benefits, absolute superiority will produce absolute interests, and comparative superiority will produce comparative interests.