The Law of Comparative Advantage as a Basis for Understanding Essay

The Law of Comparative Advantage as a Basis for Understanding International Trade - Essay Example In addition, comparative advantage as a basis for understanding international trade is limited by the distance between the trading partners thereby increasing the transaction cost. Introduction Since the law of comparative advantage was introduced by David Ricardo in 1817, it has been used as a basis for understanding international trade. The law explained that countries should concentrate in producing what they best and let others do what they do best. The law is based on the premises that different countries have varying endowment and therefore those countries less endowed on production of a certain good should buy from more endowed countries thereby leading to more gains in trade. Ricardo demonstrated this law by giving the example of cloth and wine production between Portugal and England. Portugal is highly endowed in the production of the two and therefore Portugal would have to export the two. On the other hand, England would have to import the two goods thereby failing to gain from trade. Given that comparative advantage is based on relative operation costs, doing some things is comparatively more beneficial than others ("Comparative advantage: Doing what you do best", 2011, p. 32). ... 82). Although comparative remains a critical determinant of trade, OECD countries are more similar economically and therefore trade based on comparative advantage may not find application in current international trade ("Comparative advantage: Doing what you do best", 2011, p. 32). Despite the economic similarities among OECD countries, there are some differences which can drive trade based on comparative advantage. Moreover, there are remarkable differences between OECD countries and non-OECD countries and between non-OECD. Consequently, applicability of the comparative advantage could be more pronounced in North to South trade and South-South trade rather than it is for the North to North trade ("Comparative advantage: Doing what you do best", 2011, p. 32). In addition to the only one factor of production proposed by Ricardo, productive of the country is influenced by physical capital, level of education and availability of credit. Heckscher-Ohlin contradicts the argument of Ricard o and argues that varied comparative advantage among countries emerges due to differences in the abundance of factors and the intensity with which the goods rely on those factors (Morrow, 2010, p. 139). This paper seeks to analyze seeks to analyze the application of Ricardo’s and Heckscher-Ohlin law of comparative advantage to influence international trade and assess the extent to which international trade is affected by comparative advantage. International trade and comparative advantage based on Ricardo’s and Heckscher-Ohlin trade theories Production levels world over demonstrate heterogeneity and specialization (Kamery, 2004, p. 115). For instance, US produces over 35 percent of total

Chiropractic Research Paper Example | Topics and Well Written Essays - 750 words

Chiropractic - Research Paper Example Proper lifestyle has to include the need for exercises and the right rehabilitation programs for patients to practice at their own time. Some professionals also do consider acupuncture as part of the chiropractic practice. As a form of complementary and alternative medicine (CAM), the chiropractic differs significantly from the westernized medicine practices. Chiropractors may rely on evidence based practices that may not be recognized by mainstream medical practitioners, but which have proved to be of much importance in relieving pains and musculoskeletal problems in patients (Cramer et al., 2007). As such chiropractic practice is an important alternative medicine practice that medical practitioners have applied overtime to relieve pains and discomfort in muscles, joints and the nervous system among patients with much success. Studies of chiropractic practices have reported major successes in solving back pains among patients similar to other mainstream medical practices. Bishop et al. (2010) in a study on the effectiveness of chiropractic hospital-based intervention observed that, in patients with acute mechanical low back pain, chiropractic therapies led to significantly greater improvement based on specific conditions of the patient and their functioning. These results are consistent with the chart results, which indicated that over 70 of respondents agreed with the effectiveness of chiropractic therapies in treating such pains. These respondents preferred chiropractic practice before considering other conventional medicine approaches. The statistics suggest the use of hands to relieve tensions in joints and along the spine has major benefits in relieving accumulated stress from the body. Likewise, 56% of respondents indicated that chiropractic resulted in healthy conditions; only a partly 14% refuted the benefits of the therapy in