Question

Provide two reasons why a country may not want to specialize totally in the production of the good in which it has a comparative advantage.

Answer 1

Answer

There are certain significant reason which show that country should not fully produce in one area in which it is specialized .Following are the reason from economic point of concern

1. If the country will specialize totally in the production of the good in which it has a comparative advantage then , it may result in the crisis of the country financiial condition . because other comparative countries will also be moving forward and working to give competition against this country . which will in future aspect is harmful and cant be reliable .
2. If the country will focus only the Specialize aspect of manufacturing good then it will somewhere and most probably lack in many other aspetcs of International market and Can also lead to Economical instability in the Internal aspect of a country
3. Depending on only one Speciality and regualating the economy of the whole country by just factor that is manufacturing of good will is not only prone to recsssion and economic crisis but in certain conition for example due to the Developing market compeition can lead to shut down of the whole Good manufacturing whihc can be maybe due to political disputes .

Hence thiese are the reason whihc shows that a country should not depend totally on its specialize production of good although it has a comparative advantages