Theory of comparative advantage

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1. Many Turkish, Korean and Chinese textile companies preferred Ethiopia as their destination for investment. Discuss Ethiopian's comparative advantage in Textile industry. Explain the contribution of these firms to Ethiopia by linking international trade with growth. What are the assumptions made in the theory of comparative advantage?

2. The rapid evolution of technology in communication and transportation enhance Globalization and reduce the world in to village. This in return broadens the base for customers and ease internationalization of local firms. Unlike the previous decades, currently our customers are any one globe over found hundreds of thousands of kilometers away from us. Due to these reasons, some scholar argues that globalization has only positive effect on internationalization of local firms. Do you agree or not? Critically Comment your agreement or disagreement with sufficient justification.

Reference no: EM132642532

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