Deconstructing Theory Of Comparative Advantage

Deconstructing Theory Of Comparative Advantage.


Discuss about the Deconstructing Theory of Comparative Advantage.



The Gross Domestic Product of a country is the sum of the values of the goods and services produced within the geographical boundaries of a country, within a particular period of time, usually one economic year. The GDP of a country and the growth in the same is an indicator of the economic growth of the country. However, though the increase in the GDP of a country indicates that the productivity of the country is increasing and the country is experiencing economic growth, the welfare of the residents of the country cannot be robustly measured with the help of this economic indicator (Burda and Wyplosz 2013). The reasons are as follows:

  • The distribution of income of a country cannot be seen from the increase in the GDP of the country. Even if there is high inequality in income distribution of the country but the productivity of the country is high, then also the GDP of the country will be high though the welfare of a major share of people residing in the country will be low.
  • The GDP of a country does not take into account the development indicators like education, health, sanitation and others.
  • The GDP of a country only takes into account the value of the final goods and services that are accounted for within the country. But there are many goods and services which are produced in a country and are not accounted for. GDP cannot account for these goods and the positive and negative externalities (Fleurbaey and Blanchet 2013).

Having a high GDP does not essentially mean that the country is also doing well in terms of the overall economic development and welfare aspects, which can be seen from the following table:


GDP Ranking (2016)

HDI Ranking (2016)







As can be seen from the above table, China excels visibly in terms of the GDP growth as it stands second in the world GDP ranking in 2016. However, when seen in terms of the Human Development Index, which measures the overall welfare of the residents of the country in terms of education, income and life expectancy, the country ranks visibly low at 90. Norway on the other hand, ranks 30th in terms of GDP but excels in the welfare grounds by topping the chart in the global scenario (Bray et al. 2012).

One of the major criteria which the firms take into account while taking decisions regarding investment expenditures is the rate of interest which is prevailing in the economy under the domain of which it operating at that particular point of time. This is the interest rate in the country determines the amount of borrowing and also the amount of saving. When the interest rates are high, households as well as firms borrow less as the cost of borrowing is high. Conversely, a lower interest rate prevailing in a country boosts up borrowing which in turn increases the investment expenditures of the firms (Mankiw 2014). This can be shown with the help of the following diagram and taking references of the two countries, the United States of America and the Japan:

As can be seen from the above figure, a higher rate of interest rate increases savings and discourages borrowings, thereby decreasing the investment expenditure as is currently seen to be happening in the USA as the Federal Reserve is increasing their interest rate. On the other hand a lower interest rate increases the extent of investment expenditures as the commercial firms as well as the households gain confidence to borrow money from the banks. This is the case, which is consistently prevailing in Japan over the last few years. The interest rates are maintained at almost a negative level in the country, which facilitates investments tremendously which n its turn can be considered to be one of the driving force and primary factor behind the country’s impressive growth (Aron et al. 2012).

Implications of interest rate on the growth of GDP:

When the interest rate of a country prevails at a low level, it facilitates borrowing and investment expenditures in the country as discussed above. Investment being one of the significant components of the aggregate demand in any country, the rise in the investment expenditures increases the aggregate demand in the country, which in its turn contributes in increasing the overall productivity in the country in that particular period of time. This in its turn facilitates the economic growth of the country and the GDP of the country experiences positive growth (Mankiw 2014).

Thus, it can be asserted that in a general framework, lower interest rates facilitates borrowing and investment expenditure in a country, which in turn increases the aggregate demand and the GDP of the country is expected to rise.

The comparative advantage theory of international trade came after the limitations of the classical trade theory of absolute advantage in trade were revealed. According to the comparative advantage theory, a country tries to specialize in the production of that commodity or service and also tries to export the same in which it experiences a comparative advantage in production, over the other country with which it is trading. In simpler words, a country generally exports that commodity, which it can produce abundantly, and more cost effectively, depending upon the nature of resources it has and imports that commodity which it cannot produce efficiently and has a comparative disadvantage than the other countries with which it is trading (Gopinath, Helpman and Rogoff 2014).

The theory of comparative advantage is considerably relevant in the real world trade scenario as the countries do export the goods and services which they can produce more efficiently than others do and imports those commodities or services whose domestic cost of production is high.

When considered from a broader and generalized perspective, free trade is expected to benefit all the countries in the world as free trade allows the consumers of a country to get products at a cheaper price and the firms of the country to export their products and earn revenue. However, though it has many positive implications on the economic growth of the countries, there are several negative implications of the same, especially in the less developed or developing countries. In these countries, the existence of free trade often poses threat to the growth of the small domestic industries as their bigger global counterparts gain the market by providing better quality commodities at a cheaper price, which prevents the domestic firms to attain economies of scale. Again restricting free trade by imposing tariffs also hamper the firms as they cannot import new innovations, technologies and improved machineries from abroad to boost up their production (Schumacher 2013).


Aron, J., Duca, J.V., Muellbauer, J., Murata, K. and Murphy, A., 2012. Credit, housing collateral, and consumption: Evidence from Japan, the UK, and the US. Review of Income and Wealth, 58(3), pp.397-423.

Bray, F., Jemal, A., Grey, N., Ferlay, J. and Forman, D., 2012. Global cancer transitions according to the Human Development Index (2008–2030): a population-based study. The lancet oncology, 13(8), pp.790-801.

Burda, M. and Wyplosz, C., 2013. Macroeconomics: a European text. Oxford university press.

Fleurbaey, M. and Blanchet, D., 2013. Beyond GDP: Measuring welfare and assessing sustainability. Oxford University Press.

Gopinath, G., Helpman, E. and Rogoff, K. eds., 2014. Handbook of international economics (Vol. 4). Elsevier.

Mankiw, N.G., 2014. Principles of macroeconomics. Cengage Learning.

Schumacher, R., 2013. Deconstructing the theory of comparative advantage. World Social and Economic Review, 2013(2, 2013), p.83.

Deconstructing Theory Of Comparative Advantage

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Essay on deconstructing the power of music Essay

Essay on deconstructing the power of music Essay.

Music encompasses us in our regular day to day existences. If you are a teen or just another person of any age, you and I, we will hear it when we are in the auto, at work, when we are shopping, at eateries, at specialist’s workplaces, and numerous more places. The music fills a need other than excitement at a large number of these spots. Music has the ability to impact temperament and conduct in individuals and its a dependable fact that it is utilized at each accessible opportunity.

We are acquainted with music in our mom’s womb even before we are conceived. It is utilized to sooth, to buildup up, to instruct, for diversion, as a medium to recall data, for medicinal purposes, thus significantly more. Music is utilized as a part of numerous approaches to enhance and improve the lives of individuals. It is intended to be devoured, regardless of whether it is by the audience, entertainer, or arranger.

It is an approach to decipher sentiments and wants that are at times hard to express utilizing dialect.

Writing the power of music essay I wanted to briefly explore the music history and share with you my opinion on it and my admiration of music. The style of music has changed drastically all through the ages. For example, there are six fundamental periods in music history. The Middle Ages, Renaissance, Baroque, Classical, Romantic, and Twentieth Century. The music in these times mirrors the day and age. Music has been and dependably will be a famous type of diversion for some.

The lexicon characterizes “music” as a specialty of sound in time that communicates thoughts and feelings in critical structures through the components of beat, song, concordance, and color(Dictionary).

Music has the capacity and energy to impact human considerations and practices. Managers and retail locations utilize the energy of music to deliver a coveted conduct from their representatives and clients. For instance, as indicated by The Journal of Marketing, ambient sounds is thought to enhance the store’s picture, make workers more joyful, diminish representative turnover rate, and to animate client buying (Milliman).

Does music really impact state of mind and conduct? What is it about music that influences temperament? As per an article in the Music Educators Journal, volume, rhythm, consonance, cacophony, tone shading and frame all may affect a man’s state of mind (Gaston).

It isn’t only the music itself that affects individuals; the verses of a melody can likewise have an impact. Numerous individuals are worried that music with vicious or defamatory verses may negatively affect youth and incite rough conduct. Numerous specialists have analyzed the impacts of how music incites savage conduct. In an investigation led at Western Connecticut State University specialists inspected regardless of whether viewing a brutal music video would incite the members to answer inquiries with vicious reactions. There were thirty-three members, eleven in every one of three gatherings; one gathering viewed vicious music recordings, another gathering viewed peaceful music recordings, and the last gathering did not observe any recordings. A short time later, the members were given a survey.

The examination found that the vicious music recordings provoked members to respond all the more savagely while noting inquiries regarding theoretical situations (Tropeano).

Individuals are acquainted with music even before they are conceived. As indicated by an article in Pregnancy Today, by the fifth month of pregnancy the child’s listening ability is totally created and they can hear commotions that are outside the womb. Pre-birth incitement through music may give a few infants a feeling of certainty and unwinding when they are conceived (Lacey).

In 1993 an investigation was led in Irvine, California by Dr. Francis Raucher, Dr. Gordon L. Shaw, and their partners on a gathering of thirty-six undergrad understudies it was discovered that they enhanced their spatial-fleeting insight (the capacity to rationally control protests in three-dimensional space) in the wake of tuning in to 10 minutes of a Mozart sonata. The aftereffects of the examination demonstrated that understudy’ IQ scores enhanced by 8-9 focuses and went on for 10-15 minutes. This investigation was authored the “Mozart impact (Jones).”

Music is some of the time used to unwind and alleviate individuals. After a distressing occasion, tuning in to quieting or traditional music unwinds the body and brain. Music can likewise prompt a more positive perspective. It has for quite some time been trusted that music can likewise go about as a love potion (a component, either common or substance, that animates a sexual want). Human faculties are intense and can trigger feeling. The sort of music relies upon the individual. Music triggers distinctive feelings in various individuals. What one individual appreciates and is fortified by could disturb and irritate another person.

Numerous individuals utilize music as an approach to get “pumped” up. Rec centers more often than not play music with a quicker beat to expand speed and inspiration. As indicated by an examination on melodic beat an expanded rhythm expanded the speed in which individuals preformed straightforward undertakings. It additionally influenced the members in the examination by going about as a stressor and expanding their heart rate. At the point when the beat of the music was diminished the heart rate diminished (Mayfield). Music with a quick rhythm and animates and requests physical movement.

Music treatment is developing in the field of solution. Its quieting impacts can help decrease tension and avert the negative impacts of pressure (Stress and the Environment). This can help by decreasing the negative impact t the pressure reaction has on the body and brain. Music is utilized for medicinal purposes, for example, bringing down circulatory strain and a mental imbalance. In an Italian investigation twenty-eight individuals’ circulatory strain was checked for twenty-four hours. They were then given a CD of traditional, Celtic, or Indian music to tune in to for thirty minutes for each day for one month. After the month the patient’s circulatory strain was observed by and by. The patient’s circulatory strain did in truth drop. Their normal systolic circulatory strain (the principal number in a pulse perusing) had dropped three focuses, and their normal diastolic pulse (the second number in a pulse perusing) had dropped four focuses. There were twenty different patients who did not tune in to music and in the wake of observing their pulse, there was no change (Hitti).

Kids who have been determined to have extreme introvertedness get numerous advantages from music treatment. Contingent upon where kids are set on the a mental imbalance range music can help with correspondence and give auxiliary consistency that the kids require.

We have seen that music is utilized for recuperating yet shouldn’t something be said about as a weapon of war? In 1989, music utilized as a weapon to torment initially came into light. U.S. Troops boomed boisterous music with an end goal to instigate the surrender of Manual Norriega, the Panamanian president. As indicated by an article composed by Suzanne G. Cusick this type of torment, called “acoustic siege” went standard after the cool war and is a typical practice on the war zones of Iraq and Afghanistan in “Task Enduring Freedom” (Cusick). The US additionally utilized this “acoustic assault” amid cross examinations in Guantanamo (Rapp).

What is it about music that has such a significant impact on the human personality and body? Research has demonstrated that music with a solid beat can animate mind waves to match up with the beat. The quick beat empowers more honed reasoning and better fixation though the slower beat makes a casual relatively reflective state. Music can likewise animate the cerebrum to “switch gears” simpler. It impacts stay apparent notwithstanding when you are finished tuning in (Saarman).

Utilizing music to promote is a decent method to for an organization to get the consideration of a potential customer or client and for them to buy the item or administration that they are putting forth. Jingles are regularly less demanding for individuals to recollect than out and out data. Numerous organizations utilize well known craftsmen or tunes as a medium to publicize their items. One such organization is Dr. Pepper. Their ads include famous tunes with expectations of getting the consideration and showcasing to the particular statistic related with the melody.

By utilizing music in promoting the organization needs the audience to connect the melody or tune with the item or administration so when they hear the tune they will think about the item or administration. This is an extraordinary path for individuals to recollect what they are offering.

Religion utilizes music as a way to express ones confidence and commitment. Johann Sebastian Bach, one of the world’s most popular and compelling writers, composed the majority of his music for the Lutheran church. Current Christian melodies are gotten from prominent music tunes and uses religious verses. As indicated by an article composed by Lorenzo Candelaria who is a collaborator music educator at the University of Texas at Austin,

“‘Sacred music and workmanship enable us to touch the substance of God, through our view of our general surroundings.’” He trusts that music is a route for individuals to comprehend their confidence and otherworldly existence and is an immediate path for individuals to endeavor to understand life and the hereafter (Moini).

Music is in some cases utilized exclusively for diversion purposes and goes with numerous gathering and individual exercises. Must is played in spots, for example, move clubs and skating arenas and produces a sentiment control. Quicker music will control the speed at which you skate or move or place you in the mind-set to do any of these exercises. Music is quite often utilized as a part of films. It can used to deliver the sentiment tension or energy. It is utilized as a part of tragedies to request a passionate reaction of sympathy.

As should be obvious music has been and will dependably be woven into the texture of our general public. There are numerous utilizations for music and it has numerous concealed significance and employments. Who realized that music was such an intense instrument and could have such huge numbers of consequences for the human body and brain? Its energy ranges from excitement and amusing to the capacity to recuperate, decreasing pressure, making a coveted environment for customers and representatives, thus significantly more.


  • ‘The Power Of Music’ To Affect The Brain: NPR
  • Power Of Music Quotes (69 quotes) – Goodreads
  • The power of music: how it can benefit health

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Essay on deconstructing the power of music Essay

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