Question

“Outline and compare different approaches/ perspectives on international development, from the past to the present. Then, write a bit about which perspective(s) you like and why? ”

Answer 1

1 mercantilist believed in begfer thy neighbour policy. They believed that country should export much and import very less so that country gains goods and other precious metals in the firm of money. They equated gold with wealth and progress

2 absolute advantage theory of Adam Smith stressed that country should export those commodities in which they have absolute advantage

3 comparative advantage theory of Ricardo stressed that countries should export goods in which they have comparative advantage and import goods in which they have comparative disadvantage

4 H-O theory predicted that country will export good intensive in the factor which is abundant in the country and import goods which use those factors intensively which are scare in the country

I support comparative advantage and H-O theories because they are most rational and lead to greatest benefits. They theories almost are similar however H-O theory explains basis of comparative advantage