haku: @indexterm Comparative advantage / yhteensä: 75
viite: 71 / 75
| Tekijä: | Kurz, H. D. |
| Otsikko: | Adam Smith on foreign trade: a note on the 'vent-for-surplus' argument. |
| Lehti: | Economica
1992 : NOV, VOL. 59:236, p. 475-481 |
| Asiasana: | INTERNATIONAL TRADE ECONOMIC THEORY FREE TRADE COMPARATIVE ADVANTAGE |
| Kieli: | eng |
| Tiivistelmä: | The author briefly summarizes one aspect of Smith's 'vent-for-surplus' argument and the criticism put forward against it. It is shown that Smith was well aware of the case of joint production and clearly saw that with joint production the proportions in which the products are produced need not coincide with those in which they are wanted domestically. Hence there will be an excess supply of some the joint products. The author argues that in the absence of foreign trade the overproduced amounts of certain joint products would be discarded, while with foreign trade there is the possibility of exchanging them for commodities produced abroad for which there is a demand at home. |
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