Comparative Advantage Vs. New Trade Theory

Comparative Advantage Vs. New Trade Theory

Read Carbaugh (2017), Chapters 2 & 3, and view Paul Krugman’s 2008 Nobel Prize speech.

In a critical essay, compare and contrast the theory of comparative advantage as presented by Carbaugh (2017) with Krugman’s (2008)

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critique of comparative advantage (also known as new trade theory). Examine the implications of factor endowment theory in the case of trade between countries with different endowments (e.g., different endowments of labor and capital). Assess the aims of Saudi Vision 2030 in relation to factor endowment theory and new trade theory.

At least three scholarly, peer-reviewed journal articles have to be used.

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