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Should two countries use a production possibilities curve to maximize the trade between them?
Re723phyl
A production-possibilities frontier (PPF) can be used to determine comparative and absolute advantages between two nations, which will determine who trades what and if a nation should exploit an advantage. Typically the two PPF's (not necessarily curves) are plotted along the same graph. See the graph in the link below for an example of two nations trading fish and coconuts.
PPF's determine what different combinations of products will maximize efficiency (production on the line is optimal; inside the line is inefficient and outside the line is unattainable). They cannot, however, determine how trade might be maximized. It may not be in the interest of one or both nations to simply maximize trade; rather, the nations need to decide what to trade in what quantity. A PPF of each nation will help make the optimal decision that is mutually beneficial given both parties are properly self-interested.
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When the production possibilities curve is bowed out resources are?
Resources are not perfectly shiftable between production of the two goods.
A production possibilities curve shows the relationship between the production of which two items?
any two categories of goods
Why is there a difference in waste production between low income countries and High income countries?
there is a difference in waste production between low income countries and high income countries because high income countries have more money to spend on raw materials therefore creating more waste.
Under what conditions is the production possibilities frontier linear rather than bowed out?
When the Opportunity Cost or the tradeoff between the two goods is always at a constant rate.
What is the difference between outsourcing and globalization?
Out sourcing is a media between consumers, customers and production unit. Globalization is liberalizing marketing/trade between number of countries.
When the production possibilities curve is bowed out resources are?
Resources are not perfectly shiftable between production of the two goods.
A production possibilities curve shows the relationship between the production of which two items?
any two categories of goods
What is the difference between global strategy and international strategy?
International strategies may be focused on a limited number of countries or regions. Global strategy would include - as possibilities - all areas for procurement, production, and sales.
Why does a production possibilities curve have a bowed-out shape?
The PPF is bowed outwards (concave to the origin) as tradeoffs between the production of any two goods are constant.
Why is there a difference in waste production between low income countries and High income countries?
there is a difference in waste production between low income countries and high income countries because high income countries have more money to spend on raw materials therefore creating more waste.
What are the theories of production?
The main theories of production include the production function theory, which examines the relationship between inputs and outputs in the production process; the theory of economies of scale, which suggests that as production levels increase, costs decrease per unit; and the theory of factor proportions, which analyzes the optimal combination of inputs to maximize output.
Under what conditions is the production possibilities frontier linear rather than bowed out?
When the Opportunity Cost or the tradeoff between the two goods is always at a constant rate.
What is the difference between outsourcing and globalization?
Out sourcing is a media between consumers, customers and production unit. Globalization is liberalizing marketing/trade between number of countries.
Illustrate on Production Possibility Frontier diagram if the economy experiences a technological boom?
In economics, the production possibility frontier (the PPF, also called the production possibilities curve (PPC) or the "transformation curve") is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasing one item's production in terms of the units of the other forgone. ( hope you can build on this) -- BY ASMA In economics, the production possibility frontier (the PPF, also called the production possibilities curve (PPC) or the "transformation curve") is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasing one item's production in terms of the units of the other forgone. ( hope you can build on this) -- BY ASMA
Which of the following describes one of the major economic benefits of free trade between countries?
Answer this question… Companies can lower production costs by producing goods in countries with low average wages.
What is the difference between the NATO and the US M4?
Their is no NATO M4. NATO countries that use the M4 either contract the purchase or license the production.
What is the explanation for the relationship between production and consumption?
between consumption production
