But isn't this entire notion, "comparative advantage," derived as it is from Smith's division of labor, simply baloney?
Where is the specialization on a national basis in the world economy? Anywhere? Textile production in Guatemala in India, in Mali, was comparatively advantaged to textile production in the UK or Georgia based on what? And is no longer advantaged when compared to China after the expiration of the quota agreements? Volkswagen production in Brazil? Before or after the 1999-2000 crisis and incredible reduction in factory employment and output? And what's the difference between VW production in Brazil and VW production in Mexico? There is the historical movement, migration, transformation of capital and labor that has everything to do with class and absolutely nothing to do specialization, comparative advantages, or a natural sense of rhythm. ----- Original Message ----- From: "Michael Perelman" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Thursday, September 06, 2007 10:50 AM Subject: Re: [PEN-L] comparative advantage > Yes, think of how the Koreans discovered their women had a comparative advantage in > golf & the Russians in tennis. > > I think that Alice Amsden's work on Korea is important here, where she discusses > success via "getting prices wrong". > > Also the recent work on "lock in's" is relevant here. > > In short, these "artificial barriers" can make for new structures of comparative > advantage. > > > On Thu, Sep 06, 2007 at 05:40:22AM -0700, MICHAEL YATES wrote: > > Friends, > > > > How exactly do neoclassicals say that a nation discovers the outputs in > > which it has comparative advantage? Trial and error? In a world of unequal > > power, with a history of colonialism and imperialism, what possible meaning > > coud the term even have? > > > > Stiglitz says that globalization has been driven in part by the elimination > > of "artificial" barriers to international movements of goods, services, > > money, and people. What makes whatever these barriers are "artificial?" > > Isn't the "market" just as artificial?" > > > > Michael Yates > > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail michael at ecst.csuchico.edu > michaelperelman.wordpress.com >
