2
$\begingroup$

I remember doing these in High School.It was a 2x2 square, where you could work out the math to show that countries were better off focusing on their efficiency/competitive advantage, and that free trade made both better off.

Not looking for an analysis of if the logic is right or wrong or whatnot, just what is the name of the square (assuming it has one)

Improve this question
$\endgroup$

2 Answers 2

Reset to default
3
$\begingroup$

Perhaps you mean an Edgeworth box? Here is an example demonstrating Ricardo's theory of comparative advantage using an Edgeworth box: richardo edgeworth Source: Policonomics

This shows that through trade both Portugal and England can have more wine and more cloth after opening up trade between the countries. It also shows that even if Portugal is more productive than England at producing both commodities then trade is still improving (that is what makes it comparative and not absolute advantage).

Alternatively, perhaps you mean a 2x2 table like this which shows the labor needed to produce each good: table pic

Source: KALYAN CITY LIFE

To my knowledge this table has no special name.

Improve this answer
$\endgroup$
1
  • 1
    $\begingroup$ A Punett square is an $n \times n$ square that shows how the alleles of a certain gene can recombine into other alleles. $n$ is a finite number (and in illustrative examples it is fairly small) so it was probably not the Edgeworth box which shows a square with infinitely many points. $\endgroup$
    – Giskard
    Commented Jan 27, 2017 at 21:58
1
$\begingroup$

I think you are referring to Ricardo's model of comparative advantage.

Improve this answer
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.