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Why is the east said to have a comparative advantage in producing oil?
The east has a comparative advantage in producing oil because it has fewer labor costs. American workers in oil production are paid a premium because of the dangerous and technical nature of the field.
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
When 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.
How does international trade benefit countries if each country specializes in the good in which it has a comparative advantage?
International trade benefits countries when each country specializes in producing goods in which it has a comparative advantage because it allows for increased efficiency, higher productivity, and greater economic growth. This specialization enables countries to focus on producing goods they are most efficient at, leading to lower production costs and increased competitiveness in the global market. As a result, countries can trade their surplus goods for products they do not produce efficiently, leading to a more diverse and efficient allocation of resources globally.
How is a comparative advantage obtained?
by producing a product with a lower opportunity cost
Why is the east said to have a comparative advantage in producing oil?
The east has a comparative advantage in producing oil because it has fewer labor costs. American workers in oil production are paid a premium because of the dangerous and technical nature of the field.
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
When 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.
How does international trade benefit countries if each country specializes in the good in which it has a comparative advantage?
International trade benefits countries when each country specializes in producing goods in which it has a comparative advantage because it allows for increased efficiency, higher productivity, and greater economic growth. This specialization enables countries to focus on producing goods they are most efficient at, leading to lower production costs and increased competitiveness in the global market. As a result, countries can trade their surplus goods for products they do not produce efficiently, leading to a more diverse and efficient allocation of resources globally.
How is a comparative advantage obtained?
by producing a product with a lower opportunity cost
Who had presented comparative advantage theory?
The theory of comparative advantage was presented by economist David Ricardo in the early 19th century. Ricardo argued that countries should specialize in producing goods and services in which they have a lower opportunity cost, and then trade with other countries to maximize overall production and consumption.
According to classical trade theory a country will export an item?
in which it has a comparative advantage in producing
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.
What is a type of toy does LC Toys and Games have the greatest comparative advantage in producing?
Action Figures
What is a comparative advantage?
A comparative advantage is the ability of a country, individual, or entity to produce a good or service at a lower opportunity cost than another. It is the foundation of international trade, where each party specializes in producing goods where they have a comparative advantage, leading to greater efficiency and overall economic benefits.
When does country comparative Advantage over country be in the production of television?
A country has a comparative advantage in the production of televisions when it can produce them at a lower opportunity cost compared to another country. This often results from factors such as access to cheaper labor, advanced technology, or efficient supply chains. Therefore, even if one country is more efficient in producing both televisions and other goods, it should specialize in the product where its relative advantage is greatest. This specialization allows for increased overall production and trade benefits.
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.
