The theories of absolute and comparative advantage have been offered as economic rationale for trade between and among regions and countries. Compare and contrast the two concepts. Which of the two do you think is more important for explaining the growth in global trade during the last 25 years? Why?

Q: When comparing the composition of world trade in the early 20th century to the early 21st century,…

A: Here we need to explain the terms of broad historical developments during this period : Between 20th…

Q: Indicate True (T) or False (F) for the following questions, and explain your answer in 50 words…

A: Absolute Advantage: The absolute advantage arises when the country produces more with the given…

Q: Trade theory cannot account for the empirical fact of intra-industrial trade (i.e. that countries…

A: According to trade theory, a country's economic well-being is based on the production of commodities…

Q: While the nation as a whole may gain from free trade, there is no doubt that certain regions,…

A: Answer in step 2

Q: Differentiate the trade based on absolute advantage vs. absolute disadvantage over another nation…

A: When a nation has the capacity to carry out the production of a particular commodity in large…

Q: Germany and Vietnam could become trading partners. Germany has an absolute advantage in making LCD…

A: Given: *Germany has the absolute advantage in making LCD. *Vietnam has a comparative advantage in…

Q: Country X Country Y Phones Television sets a) Fill in the table to show that country x has an…

A: Absolute advantage is the ability for producing a good using fewer inputs while comparative…

Q: With the emerging age of trade together with the drawback of transactions due to the global…

A: Answer -  With the emerging age of trade together with the drawback of transaction due to global…

Q: What theory attempts to explain why Japan is strong in automobiles, Switzerland in precision…

A: International trade occurs where the goods and services flow across the countries.

Q: can import tariffs and quotas reduce the benefits of trade in regards to absolute and comparative…

A: Answer: Introduction: Absolute advantage refers to the production of goods using fewer resources…

Q: In some simple models of trade, a country may choose to specialize in the production of a single…

A: According to the simple trade model, trade encourages the countries to concentrate its productive…

Q: Differentiate the trade based on absolute advantage vs. absolute disadvantage over another nation…

A: The concept of absolute advantage was developed by Adam Smith in his book "Wealth of Nations" to…

Q: which of the four options best represents specialization and its relationship with trade? absolute…

A: From the four options comparative advantage is the best representative of specialization and it…

Q: Saudi Arabia has huge oil reserves, but relies on the United States for oil rigs to extract the oil.…

A: Given:  Saudi Arabia has huge oil reserves.  It relies on U.S.A for oil rigs to extract the oil.

Q: Which statement is NOT a common argument against free trade? It causes jobs to be lost to foreign…

A: * ANSWER : -  The answer is OPTION "D", it causes environmental damage due to fewer regulations…

Q: Assume that you were a small country, what would you rather have a comparative or absolute advantage…

A: Absolute advantage: This concept was introduced by 'Adam Smith' and according to him, international…

Q: Which of the following is a benefit of global trade? a) Increased chances of trade surplus b) Better…

A: The import and export of products and services that take place beyond international borders is the…

Q: how does Comparative Advantage Theory explain the motivation of international business ?

A:

Q: Which of the following is not a true statement about gains from trade? Select the correct answer…

A: Here , we have to find which option is not a true statement about gains from trade.

Q: Why has the scale of global trade increased so dramatically since the mid-twentieth century? How has…

A: Three globalisation forces are - 1) low and improved transportation costs - Due to many alternative…

Q: International trade has been a great boon for many countries and, in general, has been more…

A: Exchange of goods, services and capital from one country to another country or across international…

Q: The history of trade agreements shows the shifts over time between globalism and nationalism. Where…

A: History of trade agreements includes mostly nationalist rather than globalist agreements of trade…

Q: What is wrong with world trade policy? Cite and explain some suggestion to improve the standing of…

A: Trade is important for different countries of the world. In trade, goods and services are exported…

Q: This module covers five concepts of the global economy: • Specialization and Trade • Comparative…

A: The economies around the globe are involved in various economic, and financial transaction's with…

Q: Traditional free-trade theories are based on six crucial assumptions, which may or may not be valid…

A: Free trade refers to the trade when there are no barriers imposed by the government on imports and…

Q: Outline the extent of international business and the economic outlook for trade.

A: International business involves all business activities that involve exchanges across the world.…

Q: A- What is the difference between Absolute and Comparative Advantage. B- Describe the methods of…

A: When various nations engage in the exchange of commodities and also services, it is known as…

Q: Imagine the following case study where two different countries: Albania and Belize have remained…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Which of the following are benefits of international trade?   Choose one or more answers from the…

A: Following are the benefits of international trade  A more efficient allocation of resources  Gains…

Q: Trade models claim that the condition of trade is generally always better than the condition of no…

A: Almost every economist propose the theory of free Trade. The government has to choose between two…

Q: Assume that you were a small country, what would you rather have a comparative or absolute advantage…

A: ABSOLUTE ADVANTAGE   When a country produces more units of good/service than other countries using…

Q: Explain the statement: “Countries that specialize based on comparative advantage gain from trade.”

A: The measure that involves the transfer of either services or goods being from one entity or person…

Q: which kind of trade is more beneficial for an economy, liberalized trade OR restricted trade? Give…

A: The main reasons for choosing the liberalized trade for economic growth are the following: It leads…

Q: Q) Which statement is true of natural resources in terms of global trade or a country’s economy? a.…

A: Natural resources are naturally occurring items that have the ability to generate utility to…

Q: Explain in detail the key three issues affecting global trade at present?

A: The transfer of capital, goods, and services across international borders or territories in response…

Q: choose a global event from the past 100 years such as pandemics, recessions and technological booms…

A: our world economy is interrelated to each other country regarding trade as we call it international…