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Declining Profit and Trading
About declining profit so it is a tendency of decline, was greeted by Marx (1818-1883) with the statement that is considered as evidence to explain the collapse of capitalism. Meanwhile, according to Keynes otherwise use it to show the need for political conjuncture (business cycle) specific. As for Ricardo (1772-1823) is quite clear that the entrepreneurs of the first or early in the realization of his new opinion (invention) will be the first premium, while the businessmen who later would get a relatively small part. Which is in line with the theoretical advantages of dynamic entrepreneurs who put forward by Joseph Schumpeter.
On the basis of the classical idea of the profit decline, western countries are competing for the "selling" the invention and are willing to finance the research. For Indonesia itself, the research is considered as a cost that will be wasted, so that Indonesia continues to lag because they never get premium preliminaries and just get a small part of the production of the old technology products.
Trade has become an important issue since the days of the filusuf a trade dispute whether it is morally acceptable or not. The mercantilist lift the image of the trade, although still limited to multiply the precious metals into a country (export oriented). The classic attempt to explain the advantages of international trade cooperation.
Adam Smith began proposed the theory of absolute advantage (absolute advantage), while David Ricardo fix it by proposing the theory of comparative advantage (comparative advantage). Contrary to the opinion of Smith who filed the trade would be advantageous if a country's trade in goods that are absolute in his favor. Ricardo argued that a country will benefit from trade because each party taking relatively efficient workforce respectively.
International trade theory put forward by David Ricardo (1772-1823) which began with the assumption that international traffic exchange is valid only between the two countries there is no wall between their customs, as well as the two countries is only a gold coin in circulation. Ricardo (1772-1823) utilizing the marketing law together with the quantity theory of money to develop a theory of international trade. Although a country has the advantage aboslut, but if the trade would still be profitable for both countries to trade.
Trade theory has changed the world more quickly towards globalization. If the first country that has an absolute advantage reluctant to trade, thanks to the "law of comparative costs" of Ricardo (1772-1823), the British began to re-open its trade with other nations.
On the basis of the classical idea of the profit decline, western countries are competing for the "selling" the invention and are willing to finance the research. For Indonesia itself, the research is considered as a cost that will be wasted, so that Indonesia continues to lag because they never get premium preliminaries and just get a small part of the production of the old technology products.
Trade has become an important issue since the days of the filusuf a trade dispute whether it is morally acceptable or not. The mercantilist lift the image of the trade, although still limited to multiply the precious metals into a country (export oriented). The classic attempt to explain the advantages of international trade cooperation.
Adam Smith began proposed the theory of absolute advantage (absolute advantage), while David Ricardo fix it by proposing the theory of comparative advantage (comparative advantage). Contrary to the opinion of Smith who filed the trade would be advantageous if a country's trade in goods that are absolute in his favor. Ricardo argued that a country will benefit from trade because each party taking relatively efficient workforce respectively.
International trade theory put forward by David Ricardo (1772-1823) which began with the assumption that international traffic exchange is valid only between the two countries there is no wall between their customs, as well as the two countries is only a gold coin in circulation. Ricardo (1772-1823) utilizing the marketing law together with the quantity theory of money to develop a theory of international trade. Although a country has the advantage aboslut, but if the trade would still be profitable for both countries to trade.
Trade theory has changed the world more quickly towards globalization. If the first country that has an absolute advantage reluctant to trade, thanks to the "law of comparative costs" of Ricardo (1772-1823), the British began to re-open its trade with other nations.
Thought of the classic has encouraged the holding of a free trade agreement between several countries. The theory of comparative advantage has evolved into a dynamic comparative advantage which states that comparative advantage can be created. Therefore, the mastery of technology and hard work into success factors of a country. For those countries that control technologies will increasingly benefit from the free trade, while countries that rely on natural wealth will lose in international competition.
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