Comparative advantage

different countries and cultures. Internationalisation can be both external and internal. When looking at the internal reasons, these can be proactive and reactive. Proactive reasons in internationalisation leads to a both a marketing and a profit advantage, while reactive reasons leads to a risk diversification and the increase of seasonal products. This can in the end lead to overproduction and that the firm excess their capacity. (The export marketing imperative, 2005) The external reasons can also

Harris ECN 3000 Homework #1b. Use the following information to answer questions 1-13 below. Two countries, Athens and Troy, produce two goods, ships and food, according to the following production functions: 1 ship = 4 capital + 2 labor 1 food = 1 capital + 3 labor. Athens has 200 units of capital and 100 units of labor available to produce ships and food. Troy has 100 units of capital and 150 units of labor available to produce ships and food. 1. Which good is capital intensive

protection to new and emerging industries, referred to as infant industries, from stern competition until they possess a comparative advantage to be capable of competing efficiently in international markets. The other economic reason for intervention is based on the strategic trade policy, which states that a government should assist domestic firms to attain first-mover advantages and also

limits or quotas or barriers or unbalanced tariffs is the dictionary definition for a free trade agreement (FTA). There are both advantages and disadvantages attached to FTA’s which is shown in figure 8.0. Australia has FTA’s with the following countries:  New Zealand  Chile  China  India  Indonesia  Japan  Korea  Malaysia  Singapore Thailand Figure 8.0 ADVANTAGES DISADVANTAGES Creates stronger ties with trading partners Unemployment may occur Encourages investment Can lead to pollution

Traditional economies are self-interest based systems that are very beneficial to every area that uses it. There would no longer be a need for trading with other countries because the people of traditional economies supply themselves with a reasonable amount of food and supplies, and there are never surpluses or leftovers to deal with (class article). Traditional economies are also highly independent which results in little friction occurring within the tribe or communities.Therefore, becoming

Is Communism a better economic system than capitalism? By Michael Kujawski Since the beginning of the 20th century many countries have favored the economic system of communism over capitalism many political partys around the world that are communist based have the term “workers party”incuded in their name because communism is a system for the working class and capitalism is a competitive system for the upper class society to benefit.

By the late 1800s, it had been proven that while consumers purchased goods to receive and maximize marginal utility, this was only true up to a certain point, where the ratio of marginal utility to price was the same for the other goods that they could buy. Thus, economic thinkers had the tools to reason that a consumer’s demand for a good might depend on the prices of any or even, all other consumer goods. Leon Walras wanted to show through the interactions of all markets, prices could be determined

In Kenneth E. Boulding’s 1966 article The Economics of the Coming Spaceship Earth, Boulding outlines two specific types of economies. The first being an open economy known as the Cowboy economy and the second as a closed economy referred to as the Spaceman economy. Boulding states and elaborates key topics such as materials, environmental limits and energy in relation to how they could ultimately boost economic growth for society. Boulding’s article identifies these two economies as the “then”

Introduction Economics theories are just as important as international relations theory. This is because economics theories that implemented as a economic policies for a countries will determine whether it will prosper the country’s wealth or not. Economics theories are not just determine national economic stability but it also can gives effects to international economic system. Even, economics theories are common to be discussed among scholars on how the economics theories will gives effects to

If you have an apple and I have an apple and we exchange these apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas. – George Bernard Shaw. This quote describes how the wise traders thought when trading. They knew that trading a fair trade wouldn’t be as significant as it would with sharing ideas. The effects that occurred in Europe and began the overseas discoveries and European expansion