When a country changes from agricultural to industrial, how can it affect the comparative advantage of that country? How will it change the comparative advantage of the country?

Q: How are a nation’s production possibilities affected by specialization and trade based on the law of…

A: Law of comparative advantage means a country should produce and export the good in which the…

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: 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: Which of the following best represents the benefit of trade based on comparative advantage? (a)…

A: Trade around the world is considered one of the most important activities, which assists in the…

Q: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10…

A: If a company has a lower opportunity cost in producing a good it is said that the country has a…

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: Which goods will a nation typically import? a. those goods in which the nation has an absolute…

A: Imports are the goods and services which are made in a foreign country and consumed in the domestic…

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: 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: 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: If Germany can produce 3 million cars and the United Kingdom can produce 5 million cars, which…

A: Absolute advantage arises when one country can produce more output with same set of resources in a…

Q: Which country has comparative at producing good x. How can you tell. Which country has a comparative…

A: Comparative advantage means that if a country can produce only two goods say computer and clothes if…

Q: (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should…

A: (d)   According to Ricardian Theory, international trade is beneficial not only if the two countries…

Q: When countries specialize based on their comparative advantage and trade with each other, how does…

A: Gains of trade happens when countries trade with one another and trade on goods which they…

Q: has a comparative advantage in wine D. England has a comparative advantage in cloth and Portugal has…

A: When a country produces certain goods or services at a lower cost than other countries, it is said…

Q: Trade

A: Comparative advantage refers to a situation in which a country has more specialization in one good…

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: Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…

A: According to Ricardian Theory, international trade is beneficial not only if the two countries have…

Q: Which goods will a nation typically import? a. those goods in which the nation has an absolute…

A: A country has a Comparative advantage when the opportunity cost (OC) of producing a good or service…

Q: What are the sources of Hong Kong's comparative advantage? Explain.

A: Comparative Advantage: The comparative advantage arises when a product is being produced at a lower…

Q: Opportunity cost is an important factor in looking at comparative advantage. True False

A: Answer: Comparative advantage: a country has a comparative advantage in the production of a good…

Q: Explain the difference between absolute and comparative advantage in relation to trade and give an…

A: Absolute advantage and comparative advantage are two important ideas in worldwide business and…

Q: The only two countries in the world, Alpha and Omega, face the following production possibilities…

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

Q: Automobiles                 Computers…

A: According to the question, it is given that :   Automobiles Computers USA 20 15 Germany  15 5…

Q: The table below gives the number of cars, or of coal tons, that a typical worker in the given…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: norr mic ces, can a nation's comparative advantage change over time? What factors would make it…

A: If a country's opportunity cost is lower than that of other countries, it has a comparative…

Q: Suppose that Cambodia decides to become self-sufficient in bananas and even to export t In order to…

A: Comparative advantage: It refers to the nation's production of goods and services with the lowest…

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: Japan can use all of its resources to produce 100 videos or 400 shoes. China can use all of its…

A: The information given can be represented as below:

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: Suppose Country A can produce 200 toys or 400 pineapples per day, while Country B can produce 300…

A: Comparative advantage: Comparative advantage is the ability of a country to produce goods or…

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: South Korea has an absolute advantage in the production of an item, it must also have a comparative…

A: Opportunity cost measures the trade off between two goods.

Q: In one hour, Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Who…

A: Opportunity cost is the benefit lost while making a different decision. You must compare the…

Q: What is comparative advantage? Should Bangladesh use high tech to produce telescopes or low tech?

A: International trade is generally seen as beneficial for the nations that are engaged in trade…

Q: Calculate and tell which country has comparative advantage in production of shoes? Calculate and…

A: Comparative advantage arises when the country produces a good at a lower opportunity cost than the…

Q: Each country should specialize in producing that good for which it a. has a comparative advantage b.…

A: To determine when a country should specialize in production of a good.

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.