Explain this difference between absolute advantage and
comparative advantage. If a country has an absolute advantage in
everything, can it still benefit from trade? Why or why not?
1. distinguish between absolute advantage and comparative
advantage .
2.Define free Rider
3. Externality curve shift-New power lines and impact on
existing home market
4.production possibility curve with break through in technology
and recession.
=2000 mars max
=1500 skittles max
=currently 700 mars and 800 skittles
=what is the opportunity cost of 200 more mars bars
=breakthrough in caramel production allows them to produce 2500
mars max
= recession hits , depict what will happen in mars and skittle
markets...
TQ02 - Ricardian model
1. In the simple Ricardian model international trade is based on
comparative advantage. What is the explanation for this? What
benefits does international trade have given that it is based on
comparative advantage?
2. We know that in a country the relative price of a product
have increased as a result of international trade. Does this
country export or import this product? Explain your answer!
TQ05 - Trade policy
1. If a country imposes a tariff...
What is the difference between the theory of Absolute advantage and
the theory of Comparative Advantage?Drawing
upon the
new trade theory and Porters theory of national competitive
advantage,
outline the case for government policies that would build national
competitive advantage in biotechnology, especially in the
situations of the current health crisis because of COVID
19?
Explain the difference between absolute advantage and
comparative advantage. Which is the basis for international trade,
and why? (Please Type Answer, No Handwriting)