ABOUT US

Thanh Dat

Trong Son Group 1

Dinh Duong
Comparative
Avantages for
Vietnam
Economy
Group 1
 TABLE OF CONTENTS

01 02 03
Definition History An overview on the world

04 05
Vietnamese economy Summary
1.Definition
What is comparative
advantage?

● Ability to produce
● Lower opportunity cost
● Buying the rest
2. History of
comparative
advantage theory
 The History

1776 1808 1814 1817

Adam Smith Robert Torrens A book David Ricardo

Precursor of First basic features The first original The complete
Comparative formulations version
advantage theory
 3. An overview on
the world economies
About
nation’s
Natural resources
prosperity
Labour resources
Interest rates
 Differences in countries

1Values 3 Economic
5
structures History

Cultures
Institutions

2 4
What about labour
costs, exchange rates
and economies of scale?

Wondering
The successful of Germany,
Switzerland, and Sweden?
Abundant natural resources

How can one explain the success of

Germany, Japan, Switzerland, Italy, and
South Korea - countries with limited
natural resources?
 The US

Is a “competitive” country a country in which every

company or industry competes?
 The countries’ target

Comparative advantage Absolute advantage

4. Comparative
advantages for
Vietnamese economy
The advantage of geographical location
 The advantage of climate

Tropical and subtropical climate

Monsoons, sunshine, abundant rainfall

High humidity
 High socio-political stability

Beautiful landscapes and

abundant natural resources
Golden labour source
The definition of comparative advantage

The history of comparative advantage theory

The world economies in taking

comparative advantages
5. Summary
Comparative advantages for Vietnamese economy

The wide coverage as well as the importance

of comparative advantage for any economy
 Thanks for
watching!
If you have any question,please raise your voice