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What type of economy does Philippine have?
free trade
1 Discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
What example of absolute advantage that one country has in international trade today and tell why wouldn't this advantage is not sustainable today?
need answer
Difference between comparative cost advantage and absolute cost advantage?
Absolute advantage and comparative advantage are two basic concepts to international trade. Under absolute advantage, one country can produce more output per unit of productive input than another. With comparative advantage, if one country has an absolute (dis)advantage in every type of output, the other might benefit from specializing in and exporting those products, if any exist.A country has an absolute advantage economically over another, in a particular good, when it can produce that good at a lower cost. Using the same input of resources a country with an absolute advantage will have greater output. Assuming this one good is the only item in the market, beneficial trade is impossible. An absolute advantage is one where trade is not mutually beneficial, as opposed to a comparative advantage where trade is mutually beneficial.A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country. The theory of comparative advantage explains why it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. What matters is not the absolute cost of production but the opportunity cost, which measures how much production of one good, is reduced to produce one more unit of the other good.
What is an example that illustrates the difference between comparative advantage and absolute advantage in international trade?
An example that illustrates the difference between comparative advantage and absolute advantage in international trade is the scenario where Country A can produce both cars and computers more efficiently than Country B. However, Country A has a comparative advantage in producing cars, while Country B has a comparative advantage in producing computers. This means that even though Country A has an absolute advantage in both products, it is more beneficial for both countries to specialize in the product they can produce most efficiently and trade with each other.
What type of economy does Philippine have?
free trade
1 Discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
What example of absolute advantage that one country has in international trade today and tell why wouldn't this advantage is not sustainable today?
need answer
Difference between comparative cost advantage and absolute cost advantage?
Absolute advantage and comparative advantage are two basic concepts to international trade. Under absolute advantage, one country can produce more output per unit of productive input than another. With comparative advantage, if one country has an absolute (dis)advantage in every type of output, the other might benefit from specializing in and exporting those products, if any exist.A country has an absolute advantage economically over another, in a particular good, when it can produce that good at a lower cost. Using the same input of resources a country with an absolute advantage will have greater output. Assuming this one good is the only item in the market, beneficial trade is impossible. An absolute advantage is one where trade is not mutually beneficial, as opposed to a comparative advantage where trade is mutually beneficial.A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country. The theory of comparative advantage explains why it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. What matters is not the absolute cost of production but the opportunity cost, which measures how much production of one good, is reduced to produce one more unit of the other good.
What is an example that illustrates the difference between comparative advantage and absolute advantage in international trade?
An example that illustrates the difference between comparative advantage and absolute advantage in international trade is the scenario where Country A can produce both cars and computers more efficiently than Country B. However, Country A has a comparative advantage in producing cars, while Country B has a comparative advantage in producing computers. This means that even though Country A has an absolute advantage in both products, it is more beneficial for both countries to specialize in the product they can produce most efficiently and trade with each other.
What is advantage or disadvantage of free trade?
explain the advantages and disadvantages of active trade union movement to employers,employee and the economy?
What are the effects of the Philippine topography in the economic life its people?
The area of the Philippines is a major influence in the economy. It determines who they can trade with and what foods can be produced.
Can there be trade between two nation even if one has absolute disadvantage?
Yes, and not only that, but such trade can be profitable for both countries due to comparative advantage.
What are the assumptions of absolute advantage theory?
That a country has the best advantage of making all products, all things constant. It shows what a country would have if it didn't trade.
Reasons for entering international markets?
There are 2 reasons for entering the international market or trade. 1.Absolute advantage :nations have an absolute advantage in proudcing goods. For example the US will produce 150 of x and 200 of Y and the EU will only produce 100 of x and 150 of Y. Here the USA produces more of both goods and has an absolute advantage. 2.Comparative advantage :This is when nations can produce a good with a smaller opertunity cost in comparrisant to its trade rivals.
How does foreign trade affect the Philippine economy?
Foreign trade significantly impacts the Philippine economy by driving economic growth, creating jobs, and enhancing access to goods and services. Exports contribute to national income, while imports provide essential resources and technologies that support local industries. Additionally, trade fosters foreign investment and strengthens international relations, which can lead to further economic opportunities. However, reliance on trade can also expose the economy to global market fluctuations and external shocks.
What are the concepts of absolute advantage and comparative advantage?
Absolute advantage refers to the ability of a country or individual to produce a good or service more efficiently than others, using fewer resources. In contrast, comparative advantage focuses on the relative opportunity cost of producing goods, meaning that a country should specialize in producing goods for which it has the lowest opportunity cost, even if it doesn't have an absolute advantage. This specialization allows for more efficient production and trade, ultimately benefiting all parties involved. Both concepts are fundamental to international trade and economics.
