Comparison of Modern view of comparative advantage between Adam Smiths theory and Schumacher (2012) and Palley (2008) According to Schumacher and Palley, the crux they say is tht most of the advanced economy especially the USA which had opened its gate after globalisation had started to outsource its most of the works which is likely to be at the cost of the employment that it losses to other countries especially china. In this theory, Gomory and Baumol (2008) and Samuelson (2004) had said how globalization had affected the national GDP, even though it had allowed most of the American countries to outsource their job to the developing or the slow economy countries, they have argued that the technology transfer that had taken place had made USA to step back in the research and development process. On the other hand it says that in the 1980s USA used to produce 200 PHDs for every 48 PHDs produced by Asian economies but in the year 2001 this has been estimated to be 100 PHDs for every 96 PHDs produced by Asian Economies. When most of the advanced economies are outsourcing their jobs especially in USA because of the stringent labour code, Chinese companies are trying to get the jobs of those USA with exploitation of labour codes practiced by them. GBS says that even though opening the gates to others will develop the country’s economy and the economy will grow but it will be just a jobless growth and hence it will create pressure among the federal govt to meet the required strategy for its own citizen. Technology has been the major challenge to those backward countries and hence the govt had tried to support the domestic market players with the subsidies and hence this will make them to compete with the exporters but the case is different when the country tries to undervalue its currency because doing so will promote the export but on the same time it will also increase the import price. It is to be noted that most of the underdeveloped countries are importing more except China which had undervalued its currency and also had no restrictions in labour code. Adam Smith says that even though International trade is likely to flourish in todays scenario there is a need to protect the employment opportunities of one countries.

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Robert answered on Dec 27 2021

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Comparison of Modern view of comparative advantage between Adam Smiths theory
and Schumacher (2012) and Palley (2008)
According to Schumacher and Palley, the crux they say is tht most of the advanced
economy especially the USA which had opened its gate after globalisation had started to
outsource its most of the works which is likely to be at the cost of the employment that it
losses to other countries especially china. In this theory, Gomory and Baumol (2008) and
Samuelson (2004) had said how globalization had affected the national GDP, even though it
had allowed most of the American countries to outsource their job to the developing or the
slow economy countries, they have argued that the technology transfer that had taken place
had made USA to step back in the research and development process. On the other hand it
says that in the 1980s USA used to produce 200 PHDs for every 48 PHDs produced by Asian
economies but in the year 2001 this has been estimated to be 100 PHDs for every 96 PHDs
produced by Asian Economies.
When most of the advanced economies are outsourcing their jobs especially in USA
ecause of the stringent labour code, Chinese companies are trying to get the jobs of those
USA with exploitation of labour codes practiced by them. GBS says that even though
opening the gates to others will develop the country’s economy and the economy will grow
ut it will be just a jobless growth and hence it will create pressure among the federal govt to
meet the required strategy for its own citizen. Technology has been the major challenge to
those backward countries and hence the govt had tried to support the domestic market players
with the subsidies and hence this will make them to compete with the exporters but the case
is different when the country tries to undervalue its cu
ency because doing so will promote
the export but on the same time it will also increase the import price. It is to be noted that
most of the underdeveloped countries are importing more except China which had
undervalued its cu
ency and also had no restrictions in labour code.
Adam Smith says that even though International trade is likely to flourish in todays scenario
there is a need to protect the employment opportunities of one countries. The...

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