The key here is in comparative advantage and specialization. Armenia needs to enhance whatever comparative advantages she in order for her to be competative in global markets. It is better to import things you have a comparative disadvantage in and to export things you have a comparative advantage in. Free trade is based on specialization and comparative advantage. One of Armenia's problems is cheap and efficient access to world markets and the turkish blockade makes this a bigger problem. Normally self reliance is not a efficient econmomic strategy but then again there is nothing normal about this part of the world.
Originally posted by Vrej1915
View Post
Leave a comment: