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

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 international economics about ? What can a country gain from trade ? Explain by giving…

A: International economics is a branch of economics that studies the economic interaction between…

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: Mexico can cultivate either 120 bushels of Oranges per acre or 200 bushels of Bananas per acre. What…

A: Opportunity cost refers to the value of something that must be given up to get the other goods and…

Q: How does free trade enhance global efficiency?

A: Free Trade Answer: Free trade represents a situation where different countries in the world can…

Q: How would free trade occur with a small agricultural country and a large industrial country?

A: Answer: Free trade can occur between an agricultural country and an industrial country, trade is not…

Q: Who has the comparative advantage in the production of good x ?

A: A nation engages in the international trade of goods on the basis of comparative advantage. A nation…

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: heckshecker ohlin theory suggests that land abundant nations will export land intensive good

A: In international economics, there are many theories of trade that explain the concept of exchanging…

Q: what groups tend to gain with free trade and which groups are the losers

A: Free trade: Free trade is one of the trade policy which means no restriction on import and export of…

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: 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 are 5 techniques to employ comparative advantage?

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

Q: If one country can produce a good with fewer resources than another country, this is calleda.…

A: Specialization:- Specialization is a manufacturing approach in which an organization pay more…

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

A: If there is comparative advantage for a particular good in a particular country,there would be more…

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: Who has a comparative advantage at either good x or y

A: Comparative cost advantage: - it is a principle of international trade given by David Ricardo which…

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: 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: Why the gains from trade are less ?

A: When talking about gains from trade, it is generally based on international trade as countries make…

Q: Even if neither country had a comparative advantage, why might these countries still experience…

A: Comparative advantage refers to the ability of the nations to produce goods at a lower opportunity…

Q: Comparative and absolute advantage

A: Absolute advantage and comparative advantage are the earliest theories in international trade.…

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: Specialization and trade are closely linked to______________.

A: In economics trade is defined as an economic activity where goods and services are bought and sold…

Q: Country A can produce gadgets at a lower opportunity cost than any other producer of gadgets. As a…

A: Absolute advantage refers to the uncontested superiority of a country or business to produce a…

Q: Would free trade occur with a small agricultural country and a large industrial country?

A: Free trade policy is an agreement among the countries that provide them free import and export…

Q: Some groups of nations are forming trade blocs, like North America or Europe. Are regional trade…

A: Yes, regional trade blocs are beneficial to global trade because they reduce the likelihood of…

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: How can economic nationalism help our country

A: Economy: An economy is a territory of the creation, conveyance and exchange, just as utilization of…

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: A country should specialize in producing the goods for which a. it has the highest opportunity cost.…

A: Opportunity Cost: It is the cost of next best alternative that is foregone to pursue one course of…

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…

Q: How can you say that a country participates in the global market?

A: A global market is one in which one country's goods and services are traded (bought or sold) to…