Comparative advantage specialization and gains from trade | Microeconomics

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Comparative advantage specialization and gains from trade | Microeconomics | Khan Academy

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How two parties can get better outcomes by specializing in their comparative advantage and trading
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Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course
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Пікірлер: 122

@Cheems_on_Toast 3 жыл бұрын

It's quite scary that these free resources are better at teaching than the lecturers that we pay thousands for

@fouadmajidi2568 3 жыл бұрын

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

@kalalukalubasi2737 2 жыл бұрын

Same here!

@A21842 2 жыл бұрын

My Econ lecturer is the most boring and unprofessional in global education industry

@vlad_shark Жыл бұрын

@@A21842 feel you, bro 😁

@user-rx9xg9us9h 7 ай бұрын

Same these concepts are more understandable than the courses I have taken in college.

@yerpyaboy 8 жыл бұрын

how do you know everything ever.

@ThisWorldOfEpicness 8 жыл бұрын

This guy is a God

@mehmetaydin3103 4 жыл бұрын

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

@TragicHamad 4 жыл бұрын

@@mehmetaydin3103 Don't take that comment too seriously. It's the internet, so it must be a joke.

@winnieb3324 4 жыл бұрын

Right lmao

@senak9000 3 жыл бұрын

@@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.

@WoodT92 4 жыл бұрын

I’ve been binge watching your videos during this quarantine and I’ve learned so match. Thank you MR. Khan

@omkarchakraborty1739 4 жыл бұрын

same here.......:)

@dereklund6413 Жыл бұрын

you should learn how to spell

@ItsMoe202 9 жыл бұрын

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!

@guitarguy5 5 жыл бұрын

Thanks for putting this up here.... One day when I have some extra cash, I am definitely going send a donation to Khan Academy!

@aaronlosing 12 жыл бұрын

Just finished two semester of micro then macro econ. Good stuff, Sal.

@Melissa-oi2if 4 жыл бұрын

this was one of those "OHHHH" moments so thank you 🙌🏻

@bershkasen9245 10 жыл бұрын

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 :)

@Justin-ev8nn 5 жыл бұрын

Don’t you go to business school for the clout and networking? Education is not the priority for a lot of business students.

@jayzee2634 5 жыл бұрын

Justin especially for MBA, our profs think they’re a bunch of stuck up snobs for some reason haha

@suprabathreddy980 4 жыл бұрын

sal khan went to hbs

@dairycow729 3 жыл бұрын

These videos carried and still continue to carry me through my schooling years

@shreenidhi960 Жыл бұрын

U tube saves thousands of money😊😊

@austinjackson8110 10 жыл бұрын

He needs to do this with not so nice numbers

@fudhujanta 6 жыл бұрын

thas what im sayinnn

@gordonfreeman694 6 жыл бұрын

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

@opencase9903 3 ай бұрын

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)

@doodlebuggyjump15 12 жыл бұрын

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. =)

@sarahsteinmetz7017 10 жыл бұрын

I get it now. Thank you so much.

@eldarm1853 3 жыл бұрын

I "learned" that globalisation = good. Thank you!

@booni5114 3 жыл бұрын

The 'market price' is cheaper than the price of making it yourself. That's a comparative advantage in a nutshell.

@thatyoungfan 12 жыл бұрын

maybe its different from school to school. but we learned all of this in Microeconomics

@girumiam 4 жыл бұрын

You have saved me Kahn. Bless you!

@chenliang1112 4 жыл бұрын

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.

@GDPWorking 2 ай бұрын

Cups vs plates in comparison makes both richer.

@Thecraziiii 10 жыл бұрын

Thanks a lot this was really helpful

@DigitizedSelf 12 жыл бұрын

These videos are great for relaxing and not thinking too much.

@user-dw8lv6sy2y 3 жыл бұрын

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.

@wadjeehachady7672 4 жыл бұрын

Thanks really well explained. It's really helping me for my exams

@sanajamal8784 9 жыл бұрын

best ever - well explained

@MasterRia 8 жыл бұрын

now its clear for me ..thank you

@aprajitasharma1755 9 жыл бұрын

Hi, A query, is trade between a developed country with and undeveloped country better or with another developed country? (Based on comparative advantage)

@tulsipatel646 7 жыл бұрын

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.

@Mcgurkyyy101 4 жыл бұрын

My econ professor is indian and has poor english so this just helped me so much

@-ibmshah- Жыл бұрын

I hope i can gave you my time for teaching Accounting and Finance for Free one day

@fabemma21 12 жыл бұрын

Thank you and wonderful. explained in very simple terms.

@BlaZingDux 9 жыл бұрын

Great video, as always!

@adamweiss8509 4 жыл бұрын

with that being said, is every trade scenario going to benefit from a trade of 1 of 1 ?

@minkmandex8115 4 жыл бұрын

Highly not

@johnpitt6052 11 жыл бұрын

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

@12thando34 12 жыл бұрын

these videos are awesome and even more so because they are in a playlist

@josephwheelerton 7 жыл бұрын

"The Gang Sells Cups"

@SuupaDupaa 10 жыл бұрын

This is great! Thanks a lot

@giangle5017 4 ай бұрын

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///

@cricclub2958 Жыл бұрын

Thanks for saving me..

@federicocammarata7024 11 ай бұрын

Extreamely helpful

@brianyen373 2 жыл бұрын

Thanks for everything.

@banjo2861 12 жыл бұрын

Great help and easy example - succinctly and clearly illustrated - Due Econ exam soon and this was a great help - Thank u

@-ibmshah- Жыл бұрын

this is good ahhh thanks

@kasghana2788 3 жыл бұрын

You are the best Khan. Thank you

@tushtichakraborty4149 3 жыл бұрын

This is amazing! Thank you for saving my life😭

@frikhatomar6426 11 ай бұрын

Mr Khan, you're the best (y)

@selinasaidumarova06 6 ай бұрын

Why i didn’t watch these videos earlier. This teacher is absolutely amazing, thank you 🥹

@levibaptista7900 8 ай бұрын

Great video

@bershkasen9245 10 жыл бұрын

Thank you! I would love to know more about you (the man behind the voice). Is there a link to your profile somewhere ?

@sabrayahya89 3 жыл бұрын

so interesting video sir...........thanks

@virtuousjoffrey8022 8 жыл бұрын

Are we assuming that we are trading all 15 cups with another country?

@theholywand11 12 жыл бұрын

I'm 13 and know more microeconomecics than most people in high school

@Icchejahaj_a624 5 жыл бұрын

Good explanation sir. Thankyou .

@InsightCreationz 9 жыл бұрын

Very good/simple explanation of absolute and comparative advantage :)

@jaybee587 3 жыл бұрын

Thank you

@BueTAnderbeest 11 жыл бұрын

Good for you ").

@andreagonzales4141 7 жыл бұрын

So helpful!!!!!!!!!!!! thanks

@wpxboston 10 жыл бұрын

How did you get 15 plates as the optimal?

@bmac6446 9 жыл бұрын

Because there are two people involved in the exchange. 30÷2=15

@patgrabiec4406 4 жыл бұрын

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.

@Harmonia96 11 жыл бұрын

Charlie and cups, because they start with "C" and Patty and plates, because they start with "P": brilliant. xD

@Btothewill 7 жыл бұрын

thanks vlad

@jakeluk296 7 жыл бұрын

Thank you thank you thank you

@heylulu351 3 жыл бұрын

7:36 is supposed to say "1 cup"

@chukwumau.5696 11 жыл бұрын

thanks a lot, if only you can do that of hecksher ohlin model

@rebekahgill2864 3 жыл бұрын

my king

@mehmetaydin3103 4 жыл бұрын

👏🏻 I appreciate

@dhruvpatel8076 8 жыл бұрын

If a country has an absolute advantage, does it - always - have a comparative advantage in at least one of the two goods?

@BijoySalahuddin 10 жыл бұрын

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

@pedrovelazquez6900 3 жыл бұрын

I got a little bit confuse!

@matiassosa7962 2 жыл бұрын

I'm just gonna add a data, if the FPP is linear, then the economy only have one factor of production

@charlesprenaveau4969 Жыл бұрын

So what I learned from this video is I need to outsource to china?

@IsmailHossain-gv3sl 5 жыл бұрын

I think it is absolute advantage....May be I am wrong .......please correct me

@thelion2500 9 ай бұрын

My exam starts over 11 minutes and I'm here 😂

@vatovindicator 12 жыл бұрын

im 12 and what is this

@zecorto6380 11 ай бұрын

remember

@SamedHysa 11 жыл бұрын

any1 know how much total output would therefore be?

@gdogvibes1 12 жыл бұрын

Its really not to complicated, but being 12 I suppose it is,

@priyanshigoel711 7 жыл бұрын

who gave this theory by the way?

@12thando34 12 жыл бұрын

maybe u shud just leave this to us old people lol kidding...microecon...nice stuff i promise u

@bradendredge6809 3 жыл бұрын

Notes

@bradendredge6809 3 жыл бұрын

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.

@bradendredge6809 3 жыл бұрын

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.

@bradendredge6809 3 жыл бұрын

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.

@bertissimo 10 жыл бұрын

Aaaaaaaaaahhhh!!! Please put real captions on this! Auto-Captions are terrible.

@volfmccarnivor1721 6 жыл бұрын

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.

@brandonjacobs260 10 жыл бұрын

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.

@revathysanthakumar5226 9 жыл бұрын

@Sewblon 9 жыл бұрын

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?

@1415J 3 жыл бұрын

If instead of charlie ,you had a girl, the video could have been titled, "Two girls, one cup".

@12thando34 12 жыл бұрын

IM SORRY

@BueTAnderbeest 11 жыл бұрын

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.