Publications

Received: 
17-10-2022
Accepted: 
27-11-2022
 
ISSN: 2583-049X

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International Journal of Advanced Multidisciplinary Research and Studies 

www.multiresearchjournal.com

 
718 
(Like Vietnam), this issue is even more important. 
Typically, in these countries, the range of goods by which 
they can obtain efficient scale in production is much more 
limited than in countries with large economies of scale. 
Thus, these countries can always bring in relatively more 
economic benefits than being self-sufficient by producing all 
kinds of products, a little bit of each, at high cost. 
To exploit all the absolute advantages of the country in 
accordance with the development trend and international 
economic relations. On the other hand, the relative 
advantage that can be obtained by the law of opportunity 
cost must be taken into account. It is always necessary to 
calculate what can be obtained compared to the costs to be 
paid when participating in international trade and division of 
labor in order to have appropriate countermeasures. 
Therefore, in order to develop international trade with long-
term effectiveness, it is necessary to strengthen the ability of 
economic linkages so that the interdependence relationship 
is increasing. 
International trade was born for the maximum economic 
purpose through the process of exchanging goods between 
countries through trade. 
 
2. Theoretical basis of the research problem
Many economists have proposed different models to predict 
the structure of international trade and analyze the effects of 
trade policies, such as tariffs. 
 
The Ricardo model 
The Ricardo model focuses on comparative advantage, a 
concept considered the most important in international trade 
theory. In the Ricardo model, countries focus their 
production specialization on the good they can produce most 
efficiently. Unlike other theories, Ricardo's model predicts 
that countries will specialize entirely in one good instead of 
producing many different goods. In addition, the Ricardo 
model does not consider resources directly, such as the 
relative relationship between labor and capital within a 
country.