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Cheaper cost for the production of drinks

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1 Coca Cola, a multinational company in India due to its large size is able to import sugar at a cheaper cost for the production of drinks. In your opinion what internal economies of scale was used?

2 This is one of the cornerstones of World Trade Organization (WTO) in international trade. In this feature of international trade, a country is required to treat all other countries equally when dealing with trade without any favour. What feature of trade agreement is this? ______________________

3

Country Gold bars Cars
South Africa 600 2
Ghana 200 1

a. Given the two countries above, which country has the absolute advantage in producing gold?

b. Which country has absolute advantage in producing both gold and cars?

c. What is the opportunity cost of producing 1 gold bar for South Africa?

d. What is the opportunity cost of producing 1 car for South Africa?

e. What is the opportunity cost of producing 1 gold bar for Ghana?

f. What is the opportunity cost of producing 1 car for Ghana?

Reference no: EM132939698

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