Question

The theories of absolute and comparative advantage contribute to the explanation of the international trade process. Bearing this in mind, below are some of the examples of products through which the implementation of absolute and comparative advantage in each individual india assigned to study, can be implemented:
1) Cars
2) Petroleum
3) Computers
4) Pharmaceuticals
5) Gold
- Discuss the likelihood that india would enjoy an absolute advantage, a comparative advantage, or no particular advantage of each of the products.         (5x2=10 Marks)
- Conduct your own research to see whether india is trading any of the above products with Oman. Provide details of what you find out. Sources of reference should be cited to back up your research findings.          

Answer 1

Outright favorable position is the capacity to deliver to a greater extent a given item utilizing less assets than a serious association. For instance China is the biggest maker of rice on the planet it has it the total favorable position of creating rice when contrasted with some other nation on the planet.

Similar favorable position the capacity of an association to deliver a specific decent or administration at a lower minimal and opportunity cost over the other association is called relative bit of leeway. For instance Switzerland has the near bit of leeway of creation of chocolates when contrasted with India.

ANSWER 1

Taking the question into account the country which I choose is China.
Cars- no advantage
Petroleum- no advantage
Computers- comparative advantage
Pharmaceuticals- absolute advantage
Gold -no advantage

Answer 2.

China is sending out to Oman the accompanying items

1. Plastics

2. Manures

3. Aluminum

4. Electric types of gear

5. Apparatus atomic reactors,

From the rundown of above given items China and Oman are exchanging oil. China imports oil from Oman.