Fábio Piperno: Grande risco que o PSDB corre hoje é de se tornar um outro MDB

The principle of comparative cost advantages is not really a practical one in contemporary foreign trade, so therefore the need to have an absolute. Terms of trade and export promotion are very essential in making an international trade process very successful. How can these elements help?

So, it is now left for the government of the various African countries involved to tackle these issues because the remedy is a straight forward one. Reversing most of these problems will create a lasting solution.

The theory or principle of comparative cost advantage states that countries derive mutual benefit from trade when they specialize in the production of those commodities in which they have greatest comparative cost advantage over others and exchange them for other commodities which have comparative cost disadvantage. This principle was propounded by David Ricardo in the 19th century and can help a nation to utilize its resources and as well channel more effort in the production of the actual goods bringing income to it through export.

Following are the excepts of a phone interview with Dr. V.K. Tsitsiringos, on the reasons for economic failure. I thought it would be very timely to discuss this with Dr. Tsitsiringos, as his other articles and blogs are so enlightening and informative regarding rather complex subjects.

Consumption is the total quantity of goods and services purchased and used by consumers during a specified period of time. Consumption is also described as expenditure on goods and services at a given period of time. It is the expression of total consumer demand.