what is the difference between capital and current expenditure what is the difference between capital and current expenditure
comparative advantage between two countries
A loss of comparative advantage.......
china is a great exporter and importer,
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.
When they can produce it at a lower opportunity cost than other countries.
comparative advantage between two countries
A loss of comparative advantage.......
natural resources man-power governmental policies
china is a great exporter and importer,
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.
When they can produce it at a lower opportunity cost than other countries.
true,if only one has comparative advantages.
biggest advantage of international trade shall be available to the participating countries only if trade is free and unfettered. It strongly affect prices, wages, employment and production in other countries.
In the time of global market, the country with absolute advantage has more priority to open wider the global market by having a monopoly on producing a specific product that other countries cannot produce. For the country with comparative advantage, it seems that it cannot stand steadily in the global market, because the quality of their products and what they can produce, the other countries can also produce, so they are facing the risk.
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Yes, and not only that, but such trade can be profitable for both countries due to 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.