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When doe one country have a comparative advantage over another country?
Wiki User
∙ 7y ago
When the opportunity cost of its production is lower.
Eliseo Keebler
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Why does country a have a comparative advantage over country b in the production of televisions?
Country A has a lower opportunity cost for producing televisions
Difference between absolute advantage and comparative advantage?
There are many similarities and differences between Comparative Advantage and Absolute Advantage. Some simple differences between the two would be, comparative advantage uses the driving force of specialization. Another thing of comparative are, if one country has an absolute advantage or disadvantage in any kind of output, any of the other countries will maybe profit from majoring in and distributing those products. Absolute advantage has a country that economically has a benefit over another, in a precise moral, when it produces that moral at a lower cost. Also a country using the same contribution of properties a country with an absolute advantage will have superior productivity. A few modest similarities between comparative and absolute advantage are, both of these terms are two basic concepts to international trade. Additional details would be the two terms both produce a product more efficiently which gives them an absolute advantage.
Difference between comparative cost advantage and absolute cost advantage?
Absolute advantage and comparative advantage are two basic concepts to international trade. Under absolute advantage, one country can produce more output per unit of productive input than another. With comparative advantage, if one country has an absolute (dis)advantage in every type of output, the other might benefit from specializing in and exporting those products, if any exist.A country has an absolute advantage economically over another, in a particular good, when it can produce that good at a lower cost. Using the same input of resources a country with an absolute advantage will have greater output. Assuming this one good is the only item in the market, beneficial trade is impossible. An absolute advantage is one where trade is not mutually beneficial, as opposed to a comparative advantage where trade is mutually beneficial.A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country. The theory of comparative advantage explains why it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. What matters is not the absolute cost of production but the opportunity cost, which measures how much production of one good, is reduced to produce one more unit of the other good.
When does Country A have a comparative advantage over Country B in the production of televisions?
Country A has a lower opportunity cost for producing televisions.
In which situation does one country have an absolute advantage over another country?
When its production costs are lower.
What gives china its comparative advantage over developed countries?
china is a great exporter and importer,
When does one country have an absolute advandtage over another country?
A country has an absolute advantage over another when it can produce a good or service using fewer resources than the other country. This can be due to factors like natural resources, technology, or skilled labor.
Why would a country want to take over another country?
A country may want to take over another country for reasons such as acquiring resources, expanding territory, gaining strategic advantage, or asserting dominance in a region. It can also be driven by political, economic, or ideological motivations.
What is an advantage?
An advantage is something which assists one person over another in a given situation.
Productive and comparative advantage in developing countries?
Not really sure what you are asking, but in general developing countries have not achieved economies of scale in most markets and therefore do not have a comparative advantage over other countries producing the same goods. What they sometimes will do is setup a tariff on importing those types of goods from the country with economies of scale so that they can get some more business from within their own country, build up and will in time be able to compete globally. Later they abolish the tariff and hopefully the price of said good goes down for all with another competitor in the marketplace.
What is advantage?
An advantage is something which assists one person over another in a given situation.
When does country x have an absolute advantage over country y the production of corn?
Country x has an absolute advantage when it can produce corn at a lower cost than country y.
