David Ricardo

On the Principles of Political Economy and Taxation (1817)


Reading Notes



Chapter 7, “On Foreign Trade”


Paragraph 5. Where does capital come from?


Paragraphs 6-9. Where do profits come from? Will foreign trade and machinery lead to higher profits?


Paragraph 11. What should each country devote its capital and labor to? When will this in fact occur? What is the general principle that determines what stuff will be produced where?


Paragraphs 15-17. If Portugal is better at producing both wine and cloth than is England, should Portugal produce both and avoid trade with England? Why or why not?