Readers ask: A Country Will Always Be An Exporter Of A Good Where It Has A Competitive Advantage In Production.?

Is it possible for a country to have a comparative advantage in producing a good without having an absolute advantage?

It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods. An absolute advantage exists when a country is simply the best (most efficient) in producing a product or service.

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What is the difference between absolute advantage and comparative advantage will a country always be an exporter of a good in the production of which it has absolute advantage briefly explain?

A country has an absolute advantage in those products in which it has a productivity edge over other countries; it takes fewer resources to produce a product. A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods.

Is it true that a country needs to have an absolute advantage in the production of a good in order to benefit from trade in that good?

If a nation has an absolute advantage in the production of a good, it can produce that good using fewer resources than its trading partner. If a nation has a comparative advantage in the production of a good, it can produce that good at a lower opportunity cost than its trading partner.

How do countries know when they have a comparative advantage in the production of a good?

Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. Countries are better off if they specialize in producing the goods for which they have a comparative advantage.

Which of the following scenarios best describes a country with a comparative advantage in producing a good over another country?

Which of the following scenarios best describes a country with a comparative advantage in producing a good over another country? The country can produce that good at a relatively lower cost.

In which situation does one country have an absolute advantage over another country?

To see what he meant, we must be able to distinguish between absolute and comparative advantage. A country has an absolute advantage over another country if it can produce a given product using fewer resources than the other country needs to use.

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Which is the best example of a country that is dependent on other countries?

The best example of a country that is dependent on other countries is a country that has very little or less fertile soil to make its resources.

What is an example of an absolute advantage?

Absolute advantage is an economic term that describes when one producer of a good or service can make that product at a lower cost than another. For example, Nebraska might have an absolute advantage in producing corn when compared to Massachusetts, even though they are both part of the same country.

What is the biggest factor that leads a country to specialize in certain products?

Comparative advantage drives countries to specialize in the production of the goods for which they have the lowest opportunity cost, which leads to increased productivity.

Which country has an absolute advantage in producing cars?

The United States has the absolute advantage in the production of both cars and wine. It can produce more of both goods.

What does the Heckscher Ohlin theory explain?

The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce. It takes the position that countries should ideally export materials and resources of which they have an excess, while proportionately importing those resources they need.

Who has an absolute advantage in coffee production who has an absolute advantage in nut production?

He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week. Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production? Jill has an absolute advantage in both coffee and nuts.

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When a country has a comparative advantage in the production of a good quizlet?

A country has comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country. the difference between the opportunity cost of producing the product domestically versus the cost of purchasing the product from another country receives from trade.

Why do countries not completely specialize?

We do not see complete specialization in the real world for three main reasons: Not all goods and services are traded internationally. – Some services are difficult to export, such as medical care. Production of most goods involves increasing opportunity costs. – Countries do not produce goods—firms do, and some lose.

What kind of advantage does a country have if it can make a product more inexpensively?

Comparative advantage is defined as one country’s ability to produce a good or service more efficiently and inexpensively than another.

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