“Operation Lionfish” Highlights the Caribbean’s Comparative Advantage
NACLA.org July 11, 2013 In economic textbooks the theory of comparative advantage is regarded as a fundamental cornerstone of how economies are organized. Plainly stated, comparative advantage occurs when one country (or in this case a group of countries) specialize in the production of a particular product due to the fact it can produce this product more efficiently than its competitors. Thus, with each country specializing in a particular industry or product it is assumed that all countries will become better off. This was the assumption guiding the decision by the World Trade Organization to put an end to the Caribbean’s protected trade with several European nations because it undermined the fundamental principles of free trade. With the distortions in the market eliminated by the adoption of free trade, it was assumed that the Caribbean would be able to specialize in other industries, particularly tourism and offshore banking. Due to a few fundamental errors