1. A trend had already been set in textiles, where the comparative advantage of cheap labour was becoming important. 2. However, this solution prevents the group achieving any gains from assigning people to tasks according to their comparative advantage. 3. In the classical theory of comparative advantage, there is no role for government in determining the location of industry. 4. In the nineteenth and for most of the twentieth century, the theory of comparative advantage explained what needed to be explained. 5. More economic patterns of resource allocation will result as underlying comparative advantages are allowed to exert their full potential. 6. The alternative case where free entry restores standard comparative advantage is when factor endowments are sufficiently similar to permit factor price equalization. 7. The classical theory of comparative advantage is often taught as if everyone benefits from trade. 8. There has never been a time in economic history when comparative advantage was less static. 9. We would cut those areas of production, such as mines and steel mills, where there is no comparative advantage for us. |