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company union (J5)<br />A TRADE (LABOR) UNION dependent on the company which approves it. Only the employees of that company are permitted to be members. In the nineteenth and twentieth centuries, especially in the USA, organized labour objected to these ######## umons. ities which they perform relatively better. From its first enunciation in 1815 by TORRENS, this principle has stated that a country's pattern of production and international trade and specialization are determined by its relative efficiency in producing goods. This approach advances Smith's doctrine of ABSOLUTE ADVANTAGE, which was a simple extension of his DrvisION OF LABOUR principle. Torrens and RlCARDO argued that even if country A were more productive in every agricultural and industrial activity than country B, trade would still take place if internal production cost ratios were different from country to country. Although this advanced international trade theory, it was later criticized for assuming constant costs, ignoring transport costs and for not determining the ratio at which exchange would take place. John Stuart MILL, with his LAW OF RECIPROCAL DEMAND, completed the theory by establishing the actual exchange rate resulting from trade.<br /> Ricardo's example of trade in cloth and wine between England and Portugal states that to produce a given amount of each commodity the following amounts of labour are required in each country:<br /><em>See also:</em> enterprise union; sweetheart contract; truck England Portugal
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