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Foreign companies bring their businesses there, which raises the standard of living.
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How does comparative advantage affect trade with others nations?
Andrew rules
Why economic advantage for a develop nation often a disadvantage for a developing nation?
An economic advantage for a developed nations sometimes allow them to exploit developing nations. For instance, more money and resources allow bigger nations to exploit labor in undeveloped nations.
Why is an economic advantage for developed nation often a disadvantage for a developing nation?
Profits for developed nations mean long hours and low pay for workers in developing nations. <----Nova Net
Competitive advantage of nations and its implications of implications on international business?
When businesses have a competitive advantage, then others will look to them to perform the work in international business. This will help improve the economies of developing nations.
How are developing nations primarily different from industrial nations?
Developing countries are primarily different from industrial nations in that the living standards are not the same
How do nations benefit from producing goods and services they have a comparative advantage in supplying?
They benefit by using the money they earn to buy goods and services they cannot produce as efficiently.
How does comparative advantage affect trade with others nations?
Andrew rules
Why economic advantage for a develop nation often a disadvantage for a developing nation?
An economic advantage for a developed nations sometimes allow them to exploit developing nations. For instance, more money and resources allow bigger nations to exploit labor in undeveloped nations.
Why is an economic advantage for a development nation often disadvantage for developing nation?
Profits for developed nations mean long hours and low pay for workers in developing nations. <----Nova Net
Why is an economic advantage for a developed nation often a Disadvantage for developing nation?
Profits for developed nations mean long hours and low pay for workers in developing nations. <----Nova Net
Why is an economic advantage for developed nation often a disadvantage for a developing nation?
Profits for developed nations mean long hours and low pay for workers in developing nations. <----Nova Net
Competitive advantage of nations and its implications of implications on international business?
When businesses have a competitive advantage, then others will look to them to perform the work in international business. This will help improve the economies of developing nations.
Why did England have an advantage in developing popular government over the nations in Europe?
England developed a popular government by majority.
How are developing nations primarily different from industrial nations?
Developing countries are primarily different from industrial nations in that the living standards are not the same
The principle of each country concentrating on making those goods it can produce most efficiently and buying from other nations those goods it cannot make as efficiently is known as .?
Comparative advantage
The principle of each country concentrating on making those goods it can produce most efficiently and buying from other nations those goods it cannot make as efficiently is known as?
Comparative advantage
What is the implication for free trade of the theory of comparative advantage?
Under the theory of comparative advantage two nations that each have a cost advantage in the production of a specific product would both benefit from free trade by selling to each other since the total output of both nation's products sold would increase. The mathematical theory of comparative advantage was formalized by David Ricardo in 1817 and hence became known as the "Ricardian model." Economists have long debated the usefulness of the comparative advantage model in the real world since it is counter-intuitive to many people due to the fact that the model is based on two countries producing only two goods and only one factor of production (such as labor). In addition, the model computes comparative cost advantages based on which nation produces goods at a lower opportunity cost which implies that a nation would have to forgo the production of other goods in order to achieve the lowest comparative advantage. Many economists and student of foreign trade prefer to use the theory of absolute advantage in production which is easy to understand since it is intuitive. Under the absolute advantage theory two countries that each produce a particular good at a much lower cost than the other would both become wealthier as they increased production to sell their goods to each other.
