Could you help me answer this question? The law of comparative advantage recommends that countries specialize...
Could you help me answer this question?
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage. How can a country identify the products and services in which it has a comparative advantage so that it can encourage the development of those industries?
Thank you
Homework Answers
A comparative advantage for the nation is nothing but the ability to produce the good at a lower opportunity cost. Suppose a nation is producing two goods and as compared to other nation with whom they want to trade they can produce a good at a lower cost I.e. by giving up less of the other good as compared to the second nation, they will be having a comparative advantage in the production of that certain good in the market.
Like Korea can produce 1 car by giving up 1 computer a compared to US producing 1 car by giving up 2 computer. Korea has a comparative advantage in the production of car.
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Could you help me answer this question?
The law of comparative advantage recommends that
countries specialize...
Part a: According to Adam Smith's law of absolute advantages and David Ricardo's law of comparative...
Part a: According to Adam Smith's law of absolute advantages and David Ricardo's law of comparative advantages: A. if one country has an absolute or comparative advantage over another country in producing one or more goods, then if the country with the advantage specializes in making this good it will raise total world output. B. if a country has an absolute advantage in producing a good over another country, then it increases total world output if this country specializes in...
Incorrect Question 11 0/1 pts Which of the following statements is true? Comparative advantage in producing...
Incorrect Question 11 0/1 pts Which of the following statements is true? Comparative advantage in producing a certain item arises from being the first country to manufacture that item. All countries can gain from trade if they all specialize in production according to comparative advantage A country cannot have comparative advantage in producing a certain item if it causes an increasing opportunity cost in producing the item A country cannot have a comparative advantage in producing a particular good unless...
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from oth
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from other countries, even if this means that the country is buying products that in reality, it could produce more efficiently itself. This means that Ricardo showed that a country can derive advantages by trade even though it has an absolute advantage in producing all products. The Heckscher-Ohlin theory of ...
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from oth
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from other countries, even if this means that the country is buying products that in reality, it could produce more efficiently itself. This means that Ricardo showed that a country can derive advantages by trade even though it has an absolute advantage in producing all products. The Heckscher-Ohlin theory of ...
need help with d and e 1. Comparative Advantage (1.5 marks) Analyze the following two countries....
need help with d and e
1. Comparative Advantage (1.5 marks) Analyze the following two countries. In one day in Germany, it takes 24 workers to produce an airplane and 6 workers to produce a boat. In one day in France, it takes 8 workers to produce an airplane and 4 workers to produce a boat. Both countries have 48 workers available each day. Draw the PPF of each country for one day's worth of production. Use a separate graph...
Comparative Advantage and International Trade Portfolio The production possibilities curves above show all the possible combinations...
Comparative Advantage and International Trade
Portfolio
The production possibilities curves above show all the
possible combinations of helicopters and scooters that two towns,
Millerville and Jamestown, can create using equal amounts of
resources.
Explain which country has the absolute advantage in the
production of helicopters.
Using the concept of opportunity cost that you learned
in this lesson, explain which country has the comparative advantage
in the production of scooters. You may include a table for your
explanation. (Hint: Is this...
QUESTION-2 Consider another Ricardian example, i.e., 'Comparative Advantage'. What David Ricardo saw was that it could...
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1. Compare the absolute and comparative advantages for two countries. Suppose there are two countries A...
1. Compare the absolute and comparative advantages for two countries. Suppose there are two countries A and B producing two products X and Y. The unit labor requirement for two countries and two products are: a A X = 1; a A Y = 5; a B X = 10; a B Y = 10 • Which country has absolute advantage in producing X? Why? • Which country has comparative advantage in producing X? Why? • Suppose there are LA...
Maldonia has a comparative advantage in the production of _______ while Sylvania has a comparative advantage in the production of _______ .
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Question 4: Consider two countries A & B with the following PPF's for production of cookies...
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Incorrect Question 11 0/1 pts Which of the following statements is true? Comparative advantage in producing a certain item arises from being the first country to manufacture that item. All countries can gain from trade if they all specialize in production according to comparative advantage A country cannot have comparative advantage in producing a certain item if it causes an increasing opportunity cost in producing the item A country cannot have a comparative advantage in producing a particular good unless...
need help with d and e
1. Comparative Advantage (1.5 marks) Analyze the following two countries. In one day in Germany, it takes 24 workers to produce an airplane and 6 workers to produce a boat. In one day in France, it takes 8 workers to produce an airplane and 4 workers to produce a boat. Both countries have 48 workers available each day. Draw the PPF of each country for one day's worth of production. Use a separate graph...
Comparative Advantage and International Trade
Portfolio
The production possibilities curves above show all the
possible combinations of helicopters and scooters that two towns,
Millerville and Jamestown, can create using equal amounts of
resources.
Explain which country has the absolute advantage in the
production of helicopters.
Using the concept of opportunity cost that you learned
in this lesson, explain which country has the comparative advantage
in the production of scooters. You may include a table for your
explanation. (Hint: Is this...
QUESTION-2 Consider another Ricardian example, i.e., 'Comparative Advantage'. What David Ricardo saw was that it could still be mutually beneficial for both countries to specialize and trade. Please answer the below given questions for the below given data set for Moonited Republic and Vintland Republic. SHIRTS Cost Per unit man hours 7.5 SHOES Cost Per unit man hours Moonited Republic (6000 man hours) Vintland Republic (2000 man hours) 2.5 (A) Which country has an absolute advantoge in shirts? Explain with...
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