0
What comparative advantage attracts foreign companies to the US?
Wiki User
∙ 9y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How does comparative advantage benefit developing nations?
Foreign companies bring their businesses there, which raises the standard of living.
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.
Discuss how companies use foreign exchange?
Companies enter the foreign exchange market to facilitate their regular transactions and or to speculate
Which of these is not an advantage of the foreign production of goods?
Tighter Regulations.
If no foreign companies produce in a country but many of the country's companies built products in foreign countries then it is safe to say what?
the country's GNP is greater than its GDP
How does comparative advantage benefit developing nations?
Foreign companies bring their businesses there, which raises the standard of living.
What are disinvestment polices?
Disinvestment policy attracts foreign institutions or organisation, in this policy government give its stake to other organisation or companies at higher advantages which leads in growth of economy.
List of Indian companies that entered into joint ventures with foreign companies?
list of Indian companies that entered into joint ventures with foreign companies
What marks foreign invaders and attracts phagocytes?
B cells release antibodies that attach to foreign invaders and mark them for destruction by phagocytes.
What is the advantage of knowing a foreign language?
Knowing a foreign language can broaden communication opportunities, enhance cultural understanding, and improve cognitive skills such as problem-solving and multitasking. It can also open up career opportunities and make traveling easier and more enjoyable.
Does the US have a comparative advantage in soft drinks?
I think U.S.A doesn't have a comparative advantage in soft drinks for many reasons. A significant reason would be that sodas can be manufactured much more cheaply in foreign countries. It makes more economic sense for Coca Cola to produce the soft drinks in the countries where they will be sold. This will take advantage of cheaper labor and reduced shipping costs. There are many things that the United States can do that will put more of our natural resources to work in a more efficient manner. <copied>
Can Foreign companies employ foreign workers to work in the US?
Yes, it is a normal practice now, particularly in IT industry. Not only that, the foreign companies also take jobs of US companies via agent to foreign countries - ooffshoare.
Why do foreign companies have a lot of power in latin America?
because most businesses were owned or did work for foreign companies
List of foreign companies in the Philippines?
There are many foreign companies that are in the Philippines. Some of the companies are Delta Motors Corporation, Alaska Milk Corporation, and Chooks-to-Go.
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.
What are the advantage of mineral resource?
Foreign exchange
Discuss how companies use foreign exchange?
Companies enter the foreign exchange market to facilitate their regular transactions and or to speculate
