Explain the difference between absolute and comparative advantage in relation to trade and give an example of each. How does the type of advantage influence trade between different countries? Why is trade beneficial? What happens if a government imposes tariffs on imported products?

Q: How is comparative advantage related to early American production?

A: A country has a comparative advantage at producing something if the country can produce it at lower…

Q: When Oz land closes off to trade, it notices that the number of firms in an industry double in size.…

A: Cournet theory explains the given phenomenon while the others does not. The Cournet model of…

Q: The United States exports corn and aircraft to the rest of the world, and it imports oil and…

A: The comparative advantage refers to when the country exports goods in which its opportunity cost of…

Q: Under what conditions does comparative advantage lead to gains from trade?

A: Comparative advantage theory: According to the comparative advantage theory which is given by David…

Q: What is the law of comparative advantage, and why is it important in international trade?

A: International trade allows countries to expand their market through exchange of goods and services…

Q: What is a free trade

A: The term trade refers to the buying and selling of commodities and this buying and selling can be…

Q: Explain how differences in technology can cause trade between countries.

A: Answer to the question is as follows :

Q: Is absolute advantage or comparative advantagemore important for trade? Explain your reasoningusing…

A: Meaning of Trade/International Trade: International trade or trade refers to the exchange of…

Q: Which nation has comparative advantage in producing good X? Why? Explain why these nations can…

A: Comparative advantage refers to the advantage of producing a good at a lower opportunity cost than…

Q: According to the theory of comparative advantage, A. A country can gain from trade only if it can…

A: When an individual, an investor, or a corporation chooses one option over another, opportunity costs…

Q: The desire for profit can end up pushing countries toward producing goods in which they have a…

A: Comparative advantage is when a country can produce a good or service at a relatively lower…

Q: What is the difference between absolute advantage and comparative advantage in decisions to trade…

A: Absolute advantage trade theory was introduced by Adam smith while comparative advantage theory was…

Q: ) With the following data decide which country has comparative advantage for which good. Show your…

A: a. The opportunity cost of producing good X for country A is 75/ 75 = 1 The opportunity cost of…

Q: What are the disadvantages and advantages of free trade?

A: International trade refers to the exchange of goods ands services between two or more nations for…

Q: How does comparative advantage play a key role in specialization & trade ?

A: Comparative advantage refers to the ability of country to produce the goods and services lower…

Q: Use the theory of comparative advantage to explain how international trade between two countries…

A: International trade takes place when countries across the globe engage with each other and exchange…

Q: Technology has increased trade? True or False

A: Technology has affected the world in a very much positive way.

Q: The Theory of Comparative Advantage states that countries gain from trade, this is because : The…

A: There are two important categories of business cycles which are inflation and recession that occur.…

Q: Why do governments intervene in trade?

A: Government interference is government legislative action that aims to alter the decisions taken…

Q: If a country produces more food and electronics than another country does it have a comparative…

A: Theory of comparative advantage was given by David Ricardo. According to David Ricardo gains from…

Q: What are the disadvantages of Free Trade

A: Meaning of Free Trade: The term free trade refers to the situation under which there are no…

Q: The principle of comparative advantage helps explain trade between nations.  True  False

A: Principle of comparative advantage was given by David Ricardo and it builds on the Principle of…

Q: What phenomenon DIRECTLY relates to gains from trade? a. rationality b. trade-offs c. specialization…

A: Gains from trade is the net benefit any country receives when they get involved in trading with…

Q: What are 5 techniques to employ comparative advantage?

A: Production means the goods and services are produced by converting raw materials into finished…

Q: AFRICA USA GASOLINE (barrels/hr) CORN (tonnes/hr) 50 15 30 25 I.Identify which country has the…

A: Absolute advantage is described as a comparison in the productivity of a firm, individual, or nation…

Q: When does a country have a comparative advantage over producing a good? Explain with examples.

A: Comparative advantage refers to an economy's ability to produce a given good or service at a lower…

Q: What are the main arguments for free trade?

A: The international trade refers to the sale and purchase of different goods and services across…

Q: Is it possible to have a comparative advantage in the production of a good but not to have an…

A: In democratic government typically, it has been seen that there is both public and private sector…

Q: In what ways has free trade helped the economy? In what ways has free trade hurt the economy?

A: Trade takes place between countries. In trade there is export and import of goods and services…

Q: Explain the theory of comparative advantage using an example, and describe five (5) assumptions.

A: comparative advantage alludes to the capacity of a country to create specific labor and products at…

Q: Is it possible to have a comparative advantage without having any absolute advantages ? Yes or No

A: A nation is said to have an absolute advantage in the production of a good (let's say X) if the…

Q: From the trade model, we found that in most cases, trade creates value. Where do we see that…

A: As we know that people exchange the goods and service at certain price which is determined by…

Q: Compare and contrast absolute advantage and comparative advantage

A: Absolute advantage is the ability of a party (person, company or country) can produce large quantity…

Q: Does intra-industry trade contradict the theory of comparative advantage?

A: Intra-industry trade refers to exchanging goods and services within the different branches and the…

Q: Why is the theory of absolute advantage incapable of explaining trade in the real world? Explain.

A: Absolute advantage occurs when an individual or a country can produce a greater quantity of a good…

Q: According to the Absolute and Comparative Advantage, which option is correct? the country with…

A: The ability of a nation to create goods and services at a lower opportunity cost rate than other…

Q: Will a country import or export products for which it has a comparative advantage? Explain.

A: Comparative advantage means that a country is manufacturing more goods than its competitor at a…

Q: Which of the following BEST describes comparative advantage?

A: Opportunity-cost plays the main role in comparative-advantage. In economics, opportunity-cost is…

Q: When a country changes from agricultural to industrial, how can it affect the comparative advantage…

A: The theory of comparative advantage was given by David Ricardo. According to David Ricardo gains…