Sunday, September 02, 2007

Cooks, cleaners and free trade



It was almost a year since Wafers had qualified. The hustle bustle at the KPO where she worked had often made her wonder whether life as an intern hadn't been far better. But she didn't complain. For, the opportunity to learn at work was immense.
She was in Chennai for the weekend and looked forward to the following week when she would work on an assignment that had David Ricardo's theory of comparative advantage as its basis.
Yes, she had read about the theory in her PE-1 but all she now remembered of that was what her professor had told the class: "If India produced rice at a lower cost than Pakistan and if Pakistan produced wheat at a lower cost than India, India should import wheat from Pakistan and Pakistan should import rice from India."

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