Absolute advantage and comparative advantage, Macroeconomics

Assignment Help:

Differences between absolute advantage and comparative advantage?             

Ans) Absolute benefit and comparative benefit are two basic concepts to international trade. Under absolute benefit, one country can make more output per unit of productive input than another can. With comparative benefit, if one country has an absolute (dis)advantage in each type of output, the other may advantage from specializing in and exporting those products, if any exist.

 


Related Discussions:- Absolute advantage and comparative advantage

Firms in the circular flow, We divide all firms into 3 categories: FR inclu...

We divide all firms into 3 categories: FR includes all firms which acquire raw material (iron ore, farm products and so on), FH all those that produce semi-manufactured goods (stee

Nations total income, If you take nations total income and subtract out pri...

If you take nations total income and subtract out private consumption government consumption what you will find?

Help, Examine the graph below. The mayor has placed a $2 tax on the sale of...

Examine the graph below. The mayor has placed a $2 tax on the sale of each taco sold within the city. How large is the decrease in producer surplus?

Little evidence to support a direct causation, As it turns out, there is li...

As it turns out, there is little evidence to support a direct causation between income and children. (If I am poor, then I will decide to have a lot of children? Alternatively: I h

Causes and consequences of inflation for an economy, Question 1: Discus...

Question 1: Discuss why living standards are higher in some countries than others. Question 2: (a) How is inflation measured? (b) What are the causes and consequence

What is total surplus in net gain, What is total surplus in net gain? T...

What is total surplus in net gain? Total surplus in net gain: The total surplus generated into a market is the total net gain to consumers and producers through trading into

Balance of payments, state and explain two factors that cause the shifts in...

state and explain two factors that cause the shifts in the balance of payments curve.

Social entrepreneur is relying on contributions, If a social entrepreneur i...

If a social entrepreneur is relying on contributions, are there not risks in being accountable and using that money wisely?

Determination of national income, Explain determination of national income ...

Explain determination of national income using aggregate demand-aggregate supply and saving-investment methods for a three sector economy.

Trade in services, TRADE IN SERVICES: India had objected to  the  incl...

TRADE IN SERVICES: India had objected to  the  inclusion of  trade in services  in  the agreement for  the UR  negotiations. The  Indian negotiations continued to raise object

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd