Misconception About Misconception About Comparative AdvantageComparative Advantage

Zhu RuijieZhu RuijieSun JiaweiSun Jiawei

Shi ChongweiShi Chongwei

Productivity and CompetitivenessProductivity and Competitiveness

Free trade is beneficial only if your Free trade is beneficial only if your country is strong enough to stand up to country is strong enough to stand up to foreign competition.foreign competition.

Productivity and competitiveness are two Productivity and competitiveness are two keys to a successful trade. Without them, keys to a successful trade. Without them, a country can hardly develop, like the old a country can hardly develop, like the old China empire.China empire.

Generally speaking, those businessmen Generally speaking, those businessmen enjoy using pauper labor to rise their enjoy using pauper labor to rise their productivity and strengthen productivity and strengthen competitiveness by exploitation.competitiveness by exploitation.

The Pauper Labor ArgumentThe Pauper Labor Argument

Foreign competition is unfair and hurts other Foreign competition is unfair and hurts other countries when it is based on low wages. Some countries when it is based on low wages. Some people may think so.people may think so.

But in our opinion, foreign competition is also But in our opinion, foreign competition is also a kind of resource that can bring local people a kind of resource that can bring local people lots of benefits. In many place, villagers work in lots of benefits. In many place, villagers work in factories in order to gain more money than factories in order to gain more money than farming and they are all freewill, Although, farming and they are all freewill, Although, compared with what they expend, it seems that compared with what they expend, it seems that it’s unfair to them. At least in China, it’s a it’s unfair to them. At least in China, it’s a unchangeable fact.unchangeable fact.

ExploitationExploitation Trade exploits a country and makes it worse off if its Trade exploits a country and makes it worse off if its

workers receive much lower wages than workers in workers receive much lower wages than workers in other nations.other nations.

As we all know that if you hope your product keep it’s As we all know that if you hope your product keep it’s competitiveness, exploitation is indispensable. It competitiveness, exploitation is indispensable. It determines whether the product will be popular or not. determines whether the product will be popular or not. A perfect work must be born with good exploitation. A perfect work must be born with good exploitation. Like NDS, beside those normal buttons, there are two Like NDS, beside those normal buttons, there are two screens in it and one of them is used to touch. This screens in it and one of them is used to touch. This exploitation make the handy video game machine exploitation make the handy video game machine different and successful.different and successful.

All above shows how important exploitation is.All above shows how important exploitation is.