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Isf a country has a comparative advantage and the currency rises what happends?
Wiki User
∙ 15y ago
it becomes harder to export goods to other countries because those goods now cost more than before. Like the Eurozone now (the dollar was V weak, and so IS Sterling now)
Wiki User
∙ 15y ago
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If a country has comparative advantage in the production of all goods should it trade?
Yes, since each country can individually specialize in its comparative advantage, the total income for both countries will increase. This is even true if one country has an absolute advantage in the production of all goods.
Difference between absolute cost advantage theory and comparative cost advantage theory?
absolute cost advantage talks about the efficiency and cheaply a country incure in the production of goods and services against other country whiles comparative advantage talks about the opotunity cost of goods
What statement illustrates the law of comparative advantage?
a country that makes the good it produuces
Will a nation tend to export or import goods which it has a comparative advantage?
A nation will export goods for which it has a comparative advantage. By exporting goods, it has the comparative advantage because it means they have a lower opportunity cost for producing the good. A country can produce it well and can produce most likely a lot of it.
When one country can produce a product more cheaply than another country can this is called?
comparative advantage
If a country has comparative advantage in the production of all goods should it trade?
Yes, since each country can individually specialize in its comparative advantage, the total income for both countries will increase. This is even true if one country has an absolute advantage in the production of all goods.
What is a country called that produces all the goods it needs?
comparative advantage :)
What illustrates the law of comparative advantage?
a country that makes the good it produuces
Difference between absolute cost advantage theory and comparative cost advantage theory?
absolute cost advantage talks about the efficiency and cheaply a country incure in the production of goods and services against other country whiles comparative advantage talks about the opotunity cost of goods
What Comparative advantage?
A country has comparative advantage if it can produce a good for less cost than any other nation. (study island)A comparative advantage is the condition that exists when someone can produce a good or service at a lower opportunity cost than someone else.
What statement illustrates the law of comparative advantage?
a country that makes the good it produuces
When one country can produce a product more cheaply than another country can this is called a?
comparative advantage
When doe one country have a comparative advantage over another country?
When the opportunity cost of its production is lower.
When one country can produce a product more cheaply than another country can this is called?
comparative advantage
Will a nation tend to export or import goods which it has a comparative advantage?
A nation will export goods for which it has a comparative advantage. By exporting goods, it has the comparative advantage because it means they have a lower opportunity cost for producing the good. A country can produce it well and can produce most likely a lot of it.
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
According to classical trade theory a country will export an item?
in which it has a comparative advantage in producing
