Macroeconomics

Theory of Absolute Advantage

The theory of absolute advantage was presented by Adam Smith in his famous book “The Wealth of Nations” published in 1776. He emphasized the division of labor and also indicated the importance of specialization in production. Smith, in his theory of absolute advantage, described that the countries’ trading should be based on absolute advantage. If…

Macroeconomics

What are The Causes of Currency Devaluation / Depreciation?

What are The Causes of Currency Devaluation / Depreciation? Currency depreciation is a situation where the value of a specific currency falls in relation to other world currencies. There are many factors which impact the currencies on a continuous basis. Political, social, monetary. Currency depreciation increases the cost of doing business in the international market….