It also doesn’t account for the common situation where a country could do something more cheaply internally if they had a decade or two to spool shit up.
See China where it’s gone from a comparative advantage in coal and not much else, to cheap manufacturing, to high tech manufacturing, to universal comparative advantage.
It’s all about actually having the capital. China understood the assignment and put itself in a position to attract capital and gain that comparative advantage, now it’s all paying out supremely.
It also doesn’t account for the common situation where a country could do something more cheaply internally if they had a decade or two to spool shit up.
See China where it’s gone from a comparative advantage in coal and not much else, to cheap manufacturing, to high tech manufacturing, to universal comparative advantage.
It’s all about actually having the capital. China understood the assignment and put itself in a position to attract capital and gain that comparative advantage, now it’s all paying out supremely.