Countries have different endowments of factors of production which leads to the law of comparative advantage. Discuss with examples

Q: What is free trade and what are the benefits of free trade as suggested by the principle of…

A: FREE TRADE Free trade is, in the simplest terms, the total absence of government policies which…

Q: Difference of Heckscher Ohlin Theorem from Comparative advantage theory?

A: International trade is the movement of money, products, and services through international borders…

Q: The theory of comparative advantage is credited to Group of answer choices Adam Smith. John…

A: The concept of "comparative advantage" basically refers to a country's capacity to manufacture a…

Q: What is the difference between absolute advantage and comparative advantage in decisions to trade…

A: Absolute advantage trade theory was introduced by Adam smith while comparative advantage theory was…

Q: What is Comparative Advantage and how is it determined? Explain this concept in words.

A: Theory of comparative advantage in international trade helps trading countries in specialization and…

Q: Explain the concept of comparative advantage and how it is related to the benefit that nations…

A: The law of comparative advantage was developed in 1817 by David Ricardo to explain why countries…

Q: How does comparative advantage play a key role in specialization & trade ?

A: Comparative advantage refers to the ability of country to produce the goods and services lower…

Q: How is the theory of absolute advantage similar to that of comparative advantage? How is it…

A: The theories of comparative and absolute advantage are studied under international economics. The…

Q: Q9 In the 18th century, _____ was the first to formulate the principle of comparative advantage. a.…

A: The concept of Comparative advantage was firstly introduced by the British political economist David…

Q: a)Identify an example of absolute advantage relative to the United States from your data tables. Be…

A: (a) The U.S take a shorter time to produce the products like corn, citrus, apparel, and computer…

Q: What are the impacts of comparative advantage and absolute advantage?

A: Absolute Advantage: Absolute advantage refers to a situation where a country can produce a…

Q: Explain the theory of comparative advantage. How realistic are the assumptions of this theory?

A: The theory of comparative advantage, developed by economist David Ricardo, explains how countries…

Q: Please use the theory of comparative advantage to explain how international trade between two…

A: The comparative advantage refers to the advantage of production of goods and and service at a lower…

Q: Trade

A: Comparative advantage refers to a situation in which a country has more specialization in one good…

Q: Compare and explain absolute and comparative advantage by giving examples

A: A country or organization is said to have an absolute advantage, it requires fewer assets—by and…

Q: Write a clearly positive economic statement referring to comparative advantage. Explain why is it a…

A: Positive economic statements are the ones which do not necessarily have to be true but they can be…

Q: Is absolute advantage or comparative advantage more important for trade? Give an Example

A: International trade or trade refers to the exchange of capital, goods, and services outside the…

Q: explain the comparative advantage and the conditions under which it is beneficial for parties to…

A: International trade: - it means the buying and selling of goods and services with other countries.

Q: The United States and Canada have the production possibilities curves shown above.  It is determined…

A: The formula is:The opportunity cost of production of a good = maximum production of other good /…

Q: Economic theory suggests that we can increase productivity by:     Specializing according to…

A: Opportunity cost is the cost of producing one good in terms of other.  Opportunity cost shows the…

Q: Gary and Brenda both have similar businesses in the garment industry making caps and backpacks. In…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Opportunity cost is an important factor in looking at comparative advantage. True False

A: Answer: Comparative advantage: a country has a comparative advantage in the production of a good…

Q: Apply the application of comparative advantage between the india and US. Using an example.

A: Competitive advantage is an economic idea that implies that a country should specialise in producing…

Q: Explain the difference between absolute advantage and comparative advantage. Which is more important…

A: Opportunity cost is the decrease in number of units of one good to produce more of other good.

Q: PRODUCT PER WORKER SOUTH AFRICA NIGERIA TABLES 100 UNITS 40 UNITS CHAIRS 50 UNITS 10 UNITS…

A: Given, PRODUCT PER WORKER SOUTH AFRICA NIGERIA TABLES 100 UNITS 40 UNITS CHAIRS 50 UNITS 10…

Q: Compare and contrast absolute advantage and comparative theories. advantage trade

A: The goal of Trade Theory is to explain current trade patterns and their impact on the domestic…

Q: Why is it important that the country or region with the lower opportunity cost produce the good? How…

A: Comparative advantage: A country has a comparative advantage in the production of a good if it can…