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Copyright © Cambridge Political Economy Society

research-article

Ricardo's international trade theory: beyond the comparative cost example

Andrea Maneschi

Vanderbilt University

Abstract

After all, free trade for Ricardo meant a policy appropriate to an advanced manufacturing nation in its relation with agrarian nations supplying it with food; the point of the chapter on foreign trade in the Principles is not to explain the gains from trade but to demonstrate that foreign trade only affects the rate of profit insofar as it leads to the importation of cheaper wage goods (Blaug, 1987, p. 440).

Manuscript received February 11, 1991; final version received October 7, 1992.


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