Want this question answered?
In trade and commerce, the marketplace allows producers to take advantage of their costs of production. Each business can specialize in the production of a product in which they have the opportunity to have a lower cost of production. With that comes the comparative advantage. This increases total production and makes the economy larger. With this all companies have the chance to benefit. The additional production generated by specialization is the gain from free trade.
In theoretical economics, for gains from trade we distinguish between (a) A small country trading with RoW (Rest of the World), where the former is a price taker and cannot influence world prices, the maximum it can do is exchange at world prices. For a closed small economy by opening up to trade and partially specialise in its comparative advantage (cost advantage) helps to exchange more of the non-comparative advantage commodity from the world, thus taking the country to a higher utility schedule. Ex: For a production of clothing and food, say small country has a comparative advantage in food production, while the Row in clothing, thus small country can choose to produce food which it can more efficiently and then exchange it for clothing from RoW. Thus for a small country consumer more of both is available, raising utility. (b) A large country trading with RoW, here the large country is a monopolist concerned with supply, and also affects world demand with its large demand for imports, hence a monopolist would choose not to operate at (a) P=MC and (b) remain on the inelastic part of the demand curve and hence resorting to an optimal tariff bound trade that takes it to the maximum utility. This is easy to understand and involves a derivation, but this is the essential introduction.
If they can produce something with less opportunity cost than the US. For example (purely academic and theoretical), to produce 1 million dices, Mexico has to give up 500 cars However, in the US, to produce 1 million dices, it has to give up 800 cars (due to different factors of production). Thus, Mexico has a comparative advantages over the US. Nevertheless, it is unlikely that less developed countries can gain comparative advantages over high income countries (except for example: China's sweatshops)
What reservations would you have in developing computerized applications to gain a competitive advantage in an important market for your company?
The advantage of specialization is to gain greater degrees of productive efficiency within the entire system of businesses or areas. Specialization is the basis of global trade as few countries produce enough goods to be completely self-sufficient. So each country specializes at producing what its best at.
In trade and commerce, the marketplace allows producers to take advantage of their costs of production. Each business can specialize in the production of a product in which they have the opportunity to have a lower cost of production. With that comes the comparative advantage. This increases total production and makes the economy larger. With this all companies have the chance to benefit. The additional production generated by specialization is the gain from free trade.
It gained geographical diversity.
international trade Ricardo's theory on international trade focused on comparative costs and looked at how a country could gain from trade when it had relatively lower costs (i.e. a comparative advantage). The original example focused on the trade in wine and cloth between England and Portugal. Ricardo showed that if one country produced a good at a lower opportunity cost than another country, then it should specialise in that good. The other country would therefore specialise in the other good, and the two countries could then trade.
In theoretical economics, for gains from trade we distinguish between (a) A small country trading with RoW (Rest of the World), where the former is a price taker and cannot influence world prices, the maximum it can do is exchange at world prices. For a closed small economy by opening up to trade and partially specialise in its comparative advantage (cost advantage) helps to exchange more of the non-comparative advantage commodity from the world, thus taking the country to a higher utility schedule. Ex: For a production of clothing and food, say small country has a comparative advantage in food production, while the Row in clothing, thus small country can choose to produce food which it can more efficiently and then exchange it for clothing from RoW. Thus for a small country consumer more of both is available, raising utility. (b) A large country trading with RoW, here the large country is a monopolist concerned with supply, and also affects world demand with its large demand for imports, hence a monopolist would choose not to operate at (a) P=MC and (b) remain on the inelastic part of the demand curve and hence resorting to an optimal tariff bound trade that takes it to the maximum utility. This is easy to understand and involves a derivation, but this is the essential introduction.
The advantage of the emitter follower is that it has a positive gain of 1.
favor, dominance, gain
they gain nothing puy dead men
If they can produce something with less opportunity cost than the US. For example (purely academic and theoretical), to produce 1 million dices, Mexico has to give up 500 cars However, in the US, to produce 1 million dices, it has to give up 800 cars (due to different factors of production). Thus, Mexico has a comparative advantages over the US. Nevertheless, it is unlikely that less developed countries can gain comparative advantages over high income countries (except for example: China's sweatshops)
The Heckscher-Ohlin theory posits that countries will export goods that require factors of production that they have in abundance and import goods that require factors of production that are scarce. This theory emphasizes the role of differences in factor endowments, such as labor and capital, in determining patterns of international trade. Countries with an abundance of one factor will export goods that are intensive in that factor and import goods that are intensive in the scarce factor.
Itamplifiesthe gain
no
they gain nothing puy dead men