CA and Outsourcing

             How does comparative advantage apply to the outsourcing of jobs/industries? Has David Ricardo's Law of Comparative Advantage become irrelevant today?
             The synopsis would first introduce the concepts of Comparative advantage and Outsourcing. It would next explain why comparative advantage is not applicable to outsourcing due to its assumption that "labour could move freely among industries within a nation but not between nations". In accordance with the assumption of "two country producing two goods", a study of various nation's comparative advantage as well as their traded goods would be done to proof the principle's relation of the theory to outsourcing. We would then conclude the relevance of comparative advantage in our modern day economy.
             The main methodology used is research and analysis of information gathered via Internet, Online databases, Newspaper and Magazine Articles, National Statistic figures and textbook contents.
             Limitations such as subscription fees or online credit purchase of certain information (exp. articles) hindered our research.
             The principle of comparative advantage, according to David Ricardo, is the reason why two countries would trade. Comparative advantage between them arises as a result of their difference in production cost. The differences are caused by their nations' underlying natural and acquired advantages. Ricardo demonstrated the principle based on eleven assumptions. Labour is the only factor of production.
             Outsourcing is the process by which an organisation, in a mentioned nation, assigns part of their production process to other individuals or organisations in another nation. The finalised good would still be completed and accounted for in the original nation.
             2. Points Against the Relation between Outsourcing and Comparative A
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CA and Outsourcing. (1969, December 31). In MegaEssays.com. Retrieved 09:31, September 13, 2025, from https://www.megaessays.com/viewpaper/21969.html