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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Student Exploration: Sight vs. Sound Reactions Vocabulary: histogram‚ mean‚ normal distribution‚ range‚ standard deviation‚ stimulus Prior Knowledge Questions (Do these BEFORE using the Gizmo.) Most professional baseball pitchers can throw a fastball over 145 km/h (90 mph). This gives the batter less than half a second to read the pitch‚ decide whether to swing‚ and then try to hit the ball. No wonder hitting a baseball is considered one of the hardest things to do in sports! 1. What
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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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3. FTAs – advantages and disadvantages The principal point of Free Trade Agreements is to secure trade liberalisation. While the traditional debate about FTAs is the danger that they can divert rather than create trade‚ the record to date suggests there has been little diversion and that FTAs and regional agreements have been effective in encouraging wider trade liberalisation. A practical advantage of FTAs is that they are quicker and easier to negotiate than multilateral agreements because fewer
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the idea 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
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II. STATEMENT OF THE PROBLEM As part of a long-term study of individuals 65 years of age or older‚ sociologists and physicians at the Wentworth Medical Center in upstate New York investigated the relationship between geographic location‚ health status ( healthy or one or more comorbidities)‚ and depression. Random samples of 20 healthy individuals were selected from three geographic locations: Florida‚ New York‚ and North Carolina. Then‚ each was given a standardized test to measure depression
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viewed to be an ideal form of political system and government. Several countries these days have adopted this. Democracy signifies supreme power that lies in the body of the citizens electing leaders that will represent them. This can also be defined as political system and orientation including individuals standing by the government or by the individuals they have elected to represent them. Democracy entails numerous advantages but this is also tied to some disadvantages. Advantages of Democracy Protects
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Final Exam Practice Questions Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. Also assume that Germany has an absolute advantage in both fish and cars. If these two countries specialize and trade so as to maximize the benefits of specialization and trade‚ then |a. |the two countries’ combined output of both goods will be higher than
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Theory of Comparative Advantage Historically‚ nations have been trading with each other for hundreds of years for profit or because they do not have enough resources (land‚ labor and capital) to satisfy all the needs of consumers. For example‚ Japan has a highly skilled labor force that use technologically advanced equipment to produce cars and electrical equipment; however it does not have its own oil fields. Saudi Arabia has large supplies of oil‚ but lacks the built capital to produce cars
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What are the advantages and disadvantages to outsourcing in the global marketplace? In these times of great globalization where many countries have erased their borders when it comes to trade outsourcing has become an option for many companies. Whether or not to outsource is a key question that companies must consider. According to the Pros and Cons of Outsourcing‚ “The decision to outsource or not is a matter of finding the right balance-the balance between managing labor costs‚ workflow‚ employee
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