[Answer] Which country has a comparative advantage in the production of cotton?

Answer: Indonesia
Which country has a comparative advantage in the production of cotton?

Since 1817 economists have attempted to generalize the Ricardian model and derive the principle of comparative advantage in broader settings most notably in the neoclassical specific factors Ricardo-Viner (which allows for the model to include more factors than just labour) and factor proportions Heckscher–Ohlin models. Subsequent developments in the new trade theory motivated in part by the empirical shortcomings of the H–O model and its inability to explain intra-industry trade have provided …

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Since the (re)emergence of developing countries as a source of cotton textile production after the Textile manufacture during the Industrial Revolution such as India Bangladesh and Pakistan’s Khadi production in the Swadeshi movement initiated by Mahatma Gandhi cotton production from these countries steadily increased after colonial independence.

In these cases one cannot define which country has comparative advantage . Critics also argue that Ricardo’s theory of comparative advantage is flawed in that it assumes production is continuous and absolute. In the real world events outside the realm of human control (e.g. natural disasters) can disrupt production .

The principle of comparative advantage shows that the gains from free trade outweigh any losses as free trade creates more jobs than it destroys because it allows countries to specialize in the production of goods and services in which they have a comparative advantage .

Export-oriented industrialization (EOI) sometimes called export substitution industrialization (ESI) export led industrialization (ELI) or export-…

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