explain the comparative advantage and the conditions under which it is beneficial for parties to trade. use an example

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: Explain why it is possible for a country to have an absolute advantage in all goods, and yet it is…

A: The absolute advantage is the ability of an economy to produce commodities more efficiently than its…

Q: When Oz land closes off to trade, it notices that the number of firms in an industry double in size.…

A: Cournet theory explains the given phenomenon while the others does not. The Cournet model of…

Q: peas. 6.1 Questions from Chapter 3 (Interdependence and the Gains from Trade) 4. Specialization and…

A: Glacier has a comparative advantage in the production of basil, while Congaree has a comparative…

Q: 10. The following table describes the number of yards of cloth and barrels of wine that can be…

A: Opportunity cost is the cost of producing one good in terms of other.  Absolute advantage is where…

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: Canada and Mexico produce cars and corn. The table below shows the maximum they can produce of each…

A: Absolute advantage refers to the ability of a country to produce more of the good than the other…

Q: How does the fact that many goods are non-traded affect the extent of possible gains from trade?

A: The buying and selling of commodities and services, with compensation provided by a buyer to a…

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 can trade affect a third party positively?

A: Trade: Exchange includes exchanging products or administrations starting with one individual or…

Q: Explain why trade Is Important.

A: In economics, trade can be understood as the buying and selling of goods and services in an economy.…

Q: Is the following statement true or false? Please explain. "Everyone has a comparative advantage."

A: The flow of goods and services across borders is known as the international trade. The economist…

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: Explain the importance of opportunity costs to decision-making and how opportunity costs lead to…

A: Opportunity cost is the next best alternative foregone. For decision making,it is useful because…

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: Numbers and Graphs: Chapter 20 Arcardia Euphoria Combinations Good X Good Y Good X Good Y A 30 0 240…

A: Arcadia can produce:Good X = 30Good Y = 300For Arcadia, Opportunity Cost of Good X= 300/30 =…

Q: what groups tend to gain with free trade and which groups are the losers

A: Free trade: Free trade is one of the trade policy which means no restriction on import and export of…

Q: Who is the winners and losers from trade?  Explain with details

A: International trade refers to the purchase and sale of goods and services among businesses in…

Q: Countries have different endowments of factors of production which leads to the law of comparative…

A: Factors of production: - The inputs that are used to produce goods and services are known as the…

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: 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: What phenomenon DIRECTLY relates to gains from trade? a. rationality b. trade-offs c. specialization…

A: Gains from trade is the net benefit any country receives when they get involved in trading with…

Q: The law of comparative advantage in trade typically applies only to trade between nations and favors…

A: Comparative advantage is when one party can produce goods with lower opportunity cost. Now this…

Q: Evaluate the following statement: "Trade is like football: one team wins and the other team loses."…

A: Evaluate the following statement: "Trade is like football: one team wins and the other team loses.…

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: What is the term for a situation in which a country can produce a good at a lower opportunity cost…

A: In international financial aspects, there are key ideas that assist with explaining why nations…

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: Discuss the pros and cons of free trade.

A: Although free trade and the effects of tariffs on the global economy are hotly debated topics, they…

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: What are the  pros and cons of free trade.

A: Free trade refers to the trade that is free from all artificial barriers. It signifies a…

Q: What are the main arguments for free trade?

A: The international trade refers to the sale and purchase of different goods and services across…

Q: Growing Oranges Growing Bananas Jesse 400 200 Кayle 300 200 Who has the absolute advantage and why?…

A: Absolute advantage refers to the ability to produce more goods using same resources or same quantity…