Talk:Free Trade Area
I have removed the following paragraph
- The theory of comparative advantage rests on the necessary condition of "capital immobility." If financial (or labor) resources can move between countries, then the comparative advantage theory erodes, and absolute advantage dominates. Given the liberalization of capital flows under free trade agreements of the 1990s, the necessary condition of capital immobility no longer holds. As a consequence, the economic theory of comparative advantage no longer supports free trade theory.
For reasons see the Talk:Comparative advantage. Skatehorn, 6 Feb 21:21 CET
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