A Geometric Proof of Complete Specialization in a Three-by-Three Ricardian World Economy

This short chapter provides an illustrative explanation of the Ricardian theory of comparative advantage. Making use of a geometric approach, the proofs of Jones’ well-known theorem and its extended version by Shiozawa are reproduced in the three-country and three-good case. For the use of a geometric explanation, we employ the idea of Amano and Ikema on the goods price set which assures complete specialization.