Teori Keunggulan Mutlak (Absolute Advantage) Adam Smith

Summary

In this educational session on international trade theory, the focus is on absolute advantage, as proposed by Adam Smith, and comparative advantage by David Ricardo. Using Indonesia and Vietnam as case studies, the instructor illustrates how each country excels in producing specific goods—Indonesia in rubber and Vietnam in rice. The discussion includes calculating terms of trade and profits from exports, highlighting that Indonesia gains 3,250 tons of rice by exporting rubber, while Vietnam earns 173 tons of rubber from exporting rice. This analysis provides students with insights into the practical implications of trade theories in the global economy.

Takeaways

• 😀 International trade theory consists of absolute and comparative advantages, with contributions from Adam Smith and David Ricardo.
• 🌍 A country has an absolute advantage if it can produce more of a good using the same resources compared to another country.
• 🌾 Indonesia has an absolute advantage in producing rubber, while Vietnam has an absolute advantage in producing rice.
• 🔄 The domestic exchange rate (DER) can be calculated based on the production capabilities of each country.
• 📊 Indonesia's DER shows that 1 rubber is equivalent to 0.5 rice and vice versa, while Vietnam's DER indicates that 1 rubber equals 3.75 rice.
• 💰 Indonesia gains a profit of 3.25 tons of rice for every ton of rubber it exports to Vietnam.
• 🌾 Vietnam earns a profit of 1.73 tons of rubber for every ton of rice it exports to Indonesia.
• 📈 If Indonesia exports 1,000 tons of rubber, it can earn a total profit of 3,250 tons of rice.
• 📉 If Vietnam exports 100 tons of rice, it can gain a total profit of 173 tons of rubber.
• 🎓 Understanding these concepts of absolute advantage and exchange rates is crucial for grasping the dynamics of international trade.

Q & A

What are the two main theories of international trade discussed in the lesson?

The two main theories discussed are absolute advantage, proposed by Adam Smith, and comparative advantage, proposed by David Ricardo.

How is a country defined as having an absolute advantage?

A country is said to have an absolute advantage if it can produce more of a good than another country using the same resources.

Which country has an absolute advantage in rubber production according to the lesson?

Indonesia has an absolute advantage in rubber production.

What is Vietnam's absolute advantage in the context of the lesson?

Vietnam has an absolute advantage in rice production.

What are the production outputs for Indonesia and Vietnam in rubber and rice?

Indonesia produces 100 tons of rubber and 50 tons of rice, while Vietnam produces 40 tons of rubber and 150 tons of rice.

How is the domestic exchange rate (DTDN) for Indonesia calculated?

The DTDN for Indonesia is calculated as 1 rubber = 0.5 rice and 1 rice = 2 rubber.

What is the DTDN for Vietnam, and how is it calculated?

The DTDN for Vietnam is 1 rubber = 3.75 rice and 1 rice = approximately 0.27 rubber, calculated based on their production outputs.

What profit does Indonesia gain from selling 1 ton of rubber?

Indonesia gains 3.25 tons of rice for every ton of rubber sold.

How much rubber does Vietnam gain from selling 100 tons of rice?

Vietnam gains 173 tons of rubber from selling 100 tons of rice.

What conclusion can be drawn from the lesson about international trade?

The lesson highlights that countries can benefit from specializing in the production of goods where they have an absolute advantage and engaging in trade to maximize their economic gains.