Comparative advantage specialization and gains from trade | Microeconomics | Khan Academy
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- Опубликовано: 14 окт 2024
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How two parties can get better outcomes by specializing in their comparative advantage and trading
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It's quite scary that these free resources are better at teaching than the lecturers that we pay thousands for
I totally agree. I get scared when I attend five lectures and I understand nothing then I head to khan academy five videos I understand everything
Same here!
My Econ lecturer is the most boring and unprofessional in global education industry
@@A21842 feel you, bro 😁
Same these concepts are more understandable than the courses I have taken in college.
I’ve been binge watching your videos during this quarantine and I’ve learned so match. Thank you MR. Khan
same here.......:)
you should learn how to spell
Dude youtre amazing at explaining. I'm taking an online Macro course which I have to understand on my own. I found it a bit tricky because the given e-book doesn't really detail their explanations like you. Bravo!
how do you know everything ever.
This guy is a God
ThisWorldOfEpicness You need to read book more,God is a wrong choice to interpret your idea it could be “Wise of the 21st century “ have a nice day
@@mehmetaydin3103 Don't take that comment too seriously. It's the internet, so it must be a joke.
Right lmao
@@mehmetaydin3103 as ppl say god knows everything, this person wanted to mean that khan academy's person knows everything and is the god. have a n*ce day.
Thanks for putting this up here.... One day when I have some extra cash, I am definitely going send a donation to Khan Academy!
you are awesome.... so clear and funny as well. It is a pleasure to learn from you. I go to a leading business school (top 3) for MBA. The MBA costs > USD 100,000 But our teachers suck. THE BEST THINGS IN LIFE ARE FREE :)
Don’t you go to business school for the clout and networking? Education is not the priority for a lot of business students.
Justin especially for MBA, our profs think they’re a bunch of stuck up snobs for some reason haha
sal khan went to hbs
Just finished two semester of micro then macro econ. Good stuff, Sal.
this was one of those "OHHHH" moments so thank you 🙌🏻
He needs to do this with not so nice numbers
thas what im sayinnn
he uses nice numbers to not brainfuck people with numbers and teach the logic. once you learn the logic you will care about numbers no more
Same idea no matter the numbers. For example, for Patty, the opportunity cost of making 1 cup is 3 plates. In other words, making 1 cup is costing her the opportunity to make 3 plates.
Therefore, she should specialize in making plates and be willing to trade any time someone will give her 1 cup for less than 3 plates (i.e. 1 or 2 plates). Because for example, she can either make 1 cup and have 0 plates or she can make 3 plates and give someone 1 plate and get a cup in return for a total of 2 plates and 1 cup:) (this example assumes a market rate of 1 plate for one cup, just like in Sal's video)
I get it now. Thank you so much.
These videos carried and still continue to carry me through my schooling years
Your videos are really much help man especially as an A Level student. There are a few parts that I don't understand and this helped me. =)
So what you're saying is that different companies can cooperate to lower their OC and trade at a cheaper rate, which makes it possible for them to exceed their PPF. Nice job.
The 'market price' is cheaper than the price of making it yourself. That's a comparative advantage in a nutshell.
U tube saves thousands of money😊😊
I "learned" that globalisation = good. Thank you!
Thanks a lot this was really helpful
You have saved me Kahn. Bless you!
maybe its different from school to school. but we learned all of this in Microeconomics
now its clear for me ..thank you
These videos are great for relaxing and not thinking too much.
This content definitely helped me with my community college course. Feeling scatterbrained but the lighting and somehow the way you were worded this content made sense to me.
Thanks really well explained.
It's really helping me for my exams
Cups vs plates in comparison makes both richer.
I love your video, it is shockingly inspirational...I think I will com back when never I struggle with economic theory in this world, meme nothing easy right///
우리나라는 원이라는 화폐를 사용하고 미국에서는 달러라는 화폐를 사용합니다. 국제 무역에서 한 나라의 생산의 기회비용을 고려하였을 때 화폐가치가 상대국에 비해 뒤쳐지뎌라도 이익을 가져올 수 있다는 영상의 내용이 인상적이고 기억에남습니다. 앞으로도 좋은 영상 많이 올려주시면 감사하겠습니다.
Thanks for everything.
My econ professor is indian and has poor english so this just helped me so much
Thank you and wonderful. explained in very simple terms.
I hope i can gave you my time for teaching Accounting and Finance for Free one day
best ever - well explained
Extreamely helpful
these videos are awesome and even more so because they are in a playlist
Charlie and cups, because they start with "C" and Patty and plates, because they start with "P": brilliant. xD
You are the best Khan. Thank you
Why i didn’t watch these videos earlier. This teacher is absolutely amazing, thank you 🥹
Thanks for saving me..
This is great! Thanks a lot
"The Gang Sells Cups"
so interesting video sir...........thanks
with that being said, is every trade scenario going to benefit from a trade of 1 of 1 ?
Highly not
thanks for your wonderful lecture and i get so many information form your each Economic lecture and appreciate for your great job and hope that you will do more better in the future wish you all the best
Mr Khan, you're the best (y)
This is amazing! Thank you for saving my life😭
Great video, as always!
Thank you! I would love to know more about you (the man behind the voice). Is there a link to your profile somewhere ?
Great help and easy example - succinctly and clearly illustrated - Due Econ exam soon and this was a great help - Thank u
Hi,
A query, is trade between a developed country with and undeveloped country better or with another developed country? (Based on comparative advantage)
Thank you
Good explanation sir. Thankyou .
this is good ahhh thanks
Great video
Very good/simple explanation of absolute and comparative advantage :)
I'm 13 and know more microeconomecics than most people in high school
So helpful!!!!!!!!!!!! thanks
Are we assuming that we are trading all 15 cups with another country?
Good for you ").
I read this theory in International Business since it is an International Trade theory focused on Free Trade. After watching this video now it seems to me confusing.... :P
How did you get 15 plates as the optimal?
Because there are two people involved in the exchange. 30÷2=15
I know this was 6 Years ago, but for anyone still wondering:
Both Charlie and Patty can produce 30 units of either cups/plates because that is the most efficient for them. But in order to increase their Production Possibility Frontier they trade with each other, so that both of them have 15 of each, exceeding their independent PPF.
thanks vlad
If a country has an absolute advantage, does it - always - have a comparative advantage in at least one of the two goods?
7:36 is supposed to say "1 cup"
I'm just gonna add a data, if the FPP is linear, then the economy only have one factor of production
Thank you thank you thank you
thanks a lot, if only you can do that of hecksher ohlin model
my king
👏🏻 I appreciate
I think it is absolute advantage....May be I am wrong .......please correct me
So what I learned from this video is I need to outsource to china?
I got a little bit confuse!
Its really not to complicated, but being 12 I suppose it is,
My exam starts over 11 minutes and I'm here 😂
any1 know how much total output would therefore be?
who gave this theory by the way?
maybe u shud just leave this to us old people lol kidding...microecon...nice stuff i promise u
im 12 and what is this
remember
There are no gains from specialization only weaknesses when exploited you die or lose to someone who never specialized.
UK never specialized and easily conquered Gambia whose only product is Peanuts.
This is my theory of Comparative Advantage Trap in a peanut shell.
By not specializing in only what you are good at, you increase your purchasing power against someone else who specializes.
Food is 1/3rd of the US average household budget. If they didnt specialize...and grew their own food they would have that money to out bid others competitively for other goods.
K
Growing your own food takes time, effort and material resources like land and equipment. The opportunity cost of all of those things usually outweighs the financial benefits of not having to buy food. Have you ever known anyone to get rich by growing crops in their backyard?
Notes
I’d rather have someone teach me something that they’re an expert in, while I teach them something I’m an expert in, than leaving both of us learning on our own. Teaching one another is a win-win situation.
And when two people come together to offer a service, said services being much more difficult to attain by other means, they both gain all the more. Through specialization, economic mutual relationships are born.
And, as always, the greatest acquisition in both of two resources is attained through each party’s complete focus on one or the other. So when two parties focus on one of those factors, and both parties attain more of that resource faster than the other, then a mutually beneficial trade can be made.
Aaaaaaaaaahhhh!!! Please put real captions on this! Auto-Captions are terrible.
Nom nom nom on the nom nom scale? Compare to the nom nom scale! I wonder where I was on the nom nom scale? Ethics. Jesus loves you.
If instead of charlie ,you had a girl, the video could have been titled, "Two girls, one cup".
IM SORRY
How mean! First of they could have dyslexia, or maybe just made a typo. Why 'laugh out loud' at that and then question their intelligence? If they just can't spell, note that it doesn't take an intelligent person to know how to spell, it just requires having a good memory. I believe that you and your 9 amigos ought to be saddened for finding humour in belittling a 13 year old.
CovidImages need to be invested more than half19
cups over plates, bruh !!!