What are the differences between absolute advantage and comparative advantage? Absolute advantage and comparative advantage are two basic concepts to international trade and perhaps two most important concepts in international trade theory. Under absolute advantage‚ one country can produce more output per unit of productive input than another. With comparative advantage‚ if one country has an absolute (dis)advantage in every type of output‚ the other might benefit from specializing in and exporting
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Advantages of marginal costing (Relative to the absorption costing) Preparation of routine operating statements using absorption costing is considered less informative for the following reasons: 1. Profit per unit is a misleading figure: in the example above the operating margin of Rs2 per unit arises because fixed overhead per unit is based on output of 5‚000 units. If another basis were used margin per unit would differ even though fixed overhead was the same amount in total 2. Build-up or run
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Natural disasters are often not natural disasters‚ but are in fact human disasters. Discuss this statement in relation to seismic events. The word ‘natural’ indicates that humans have not caused the disaster. However‚ human activity can certainly interfere with nature‚ which in turn may either cause a natural disaster or make its effects much worse. Earthquakes can affect people in many different ways in countries all over the world. They are a product of intense seismic activity where plates are
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On the whole – Overall The advantages and disadvantages of living in the country. Living in the country is often the secret dream of certain city-dwellers. ……………(1)‚ in reality it has both its advantages and disadvantages. There are many advantages to living in the country. ……………….(2)‚ you are much closer to nature and can enjoy more peace and quiet. …………(3)‚ life in the country is much slower and people tend to be more open and friendly. A further advantage is that there is much less traffic
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How People React to Natural Disasters How would you feel if someone told you that in the next 5 seconds that your life would be turned upside down? The same exact thing happened to people in central Philippines‚ the only thing different is that they got no warning. A deadly earthquake with a magnitude of 7.1 struck central Philippines on a national Islamic holiday. The temblor was the strongest to shake the area in 23 years. Powerful aftershocks continue to hit widely across Bohol and Cebu. More
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of comparative advantage provide a good explanation of current patterns of international trade? For the last two centuries the international trade evolved a lot and many economists tried to explain it. One of the first theories that attempted to explain the international trade pattern was the Absolute advantage theory. A.Smith was a great economist; he is the one who created this theory. For A. Smith countries should specialize in products in which they have an absolute advantage. It was a good
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What is the difference between competitive advantage and comparative advantage? Answer: An advantage that a firm has over its competitors‚ that differentiates the Product or services offered by the firm and allows the firm to reduce it’s Cost or generate Higher Revenue or Margin is known as Competitive Advantage. A competitive advantage is something that a consumer views in a product or service as having higher value than the other competitors of the firm in the industry. It is an expertise that
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Absolute Advantage Absolute advantage is a situation where a country can produce a product more efficient than any country in producing it. It also refer to ability to produce a particular good at a lower absolute cost than another. That’s mean a country that have an absolute advantage is a country that can produce a product that are due to some combination. The determinant of absolute advantage for a country is such as favorable climate‚ good soils‚and accumulated expertise. For example‚ Bangladesh
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be around these dangerous people. In conclusion‚ homeschooling may have some advantages‚ but it cannot be a better learning method than ordinary schools. The drawbacks of homeschooling may be that homeschooled students would have difficulties in facing the world around them and would not be well-educated enough to be accepted to university or the workforce. After all‚ parents are encouraged to review the advantages and disadvantages of homeschooling and the abilities of their children to make wise
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A disaster is a natural or man-made (or technological) hazard resulting in an event of substantial extent causing significant physical damage or destruction‚ loss of life‚ or drastic change to the environment. A disaster can be ostensively defined as any tragic event stemming from events such as earthquakes‚ floods‚ catastrophic accidents‚ fires‚ orexplosions. It is a phenomenon that can cause damage to life and property and destroy the economic‚ social and cultural life of people. In contemporary
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