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Why do countries trade?
International trade is the swap of goods and services among countries. Trade enhances consumer choice and complete welfare.
Various countries have various types of factor endowments as like climate, skilled labour force and also natural resources vary among nations. Therefore several countries are better placed in the production of specific goods than all others.
Economic theory predicts all countries achieve when they specialise and trade the goods wherein they have a comparative benefit. It is true even if one nation has an absolute benefit over the other country.
What are the advantages of informal economy? Advantages of the informal sector: • Employment, opportunities and income. • Offers cheap inputs for the formal sector •
Star Petroleum and Moonlight Petroleum are retail petrol stations that compete in the local market to sell petrol to consumers. Star and Moonlight are located across the street fro
WHAT STRATEGIES ARE SUGGESTED FROM THE CONVENTIONAL VIEW OF THE INDUSTRY LIFE CYCLE
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What are the limitations of comparative advantage? Limitations of comparative advantage: International trade needs wide specialisation. This can have drawbacks as given b
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International oil has been described as the lifeblood of industrial society. A National Security Council paper in 1953 noted that American Based multinational oil companies were in
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