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Absolute Advantage is not sustainable for one dominant reason: when a product or service being monopolized by an individual nation or person exceeds a sale price deemed acceptable alternatives will be found. This reaction can be seen in numerous examples including:
- the rubber tree market in Brazil.
For a time Brazil was the only known producer of rubber in the world. For that reason, they were able to set their prices without much, if any, competitive thought. At some point, several rubber plants were smuggled out of Brazil and planted in the comparable climate of Indonesia. Indonesia now serves as the largest producer of rubber. (synthetic alternatives not to be neglected)
- The history of the oil trade
What else can I help you with?
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
What is the Assumption of absolute cost advantage?
what are the assumptions of the absolute advantage cost?
How do E-business and IT help organizations in achieving sustainable competitive advantage?
e-business and IT help organizations in achieving sustainable competitive advantage?
What is comparative advantage and absolute advantage?
absolute advantage is when a country,company, indivdual or region can produce a good better and at a cheaper cost than any other competitor.
What is an example of a nation having an absolute advantage in the production of a product?
For example, Brazil has an absolute advantage over the United States in the production of coffee; the nations of the Middle East have an absolute advantage over the United States in the production of crude oil.
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
What is the Assumption of absolute cost advantage?
what are the assumptions of the absolute advantage cost?
How do E-business and IT help organizations in achieving sustainable competitive advantage?
e-business and IT help organizations in achieving sustainable competitive advantage?
What is comparative advantage and absolute advantage?
absolute advantage is when a country,company, indivdual or region can produce a good better and at a cheaper cost than any other competitor.
What has China had an absolute advantage in producing?
They have an absolute advantage in making adult pleasures such as dildos and vibrators. Who knew the Chinese were such a horny nation.
What is the absolute advantage of Pakistan?
asadasd
What is an example of a nation having an absolute advantage in the production of a product?
For example, Brazil has an absolute advantage over the United States in the production of coffee; the nations of the Middle East have an absolute advantage over the United States in the production of crude oil.
Explain Theory of absolute cost advantage by propounded by Adam smith?
explain theory of absolute cost advantage as propounded by Adam smith
Can a person have an absolute advantage in two tasks and a comparative advantage in only one?
no
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?
Contrast between absolute advantage and comparative advantage?
Absolute advantage is when a producer can produce a good using less resources than their competitor(s), whereas comparative advantage is when a producer does not hold the absolute advantage but their ratio in producing a good is smaller. Example: Brian can type 30 words per minute and iron 10 shirts per house. John can type 15 words per minute and iron 8 shirts per hour. Though Brian has the absolute advantage in ironing, John has the comparative advantage.
Difference between absolute advantage and 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.
