Question

Prepare a short report of maximum 3 pages comparing Pakistan with Oman: 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 country you have been assigned to study, can be implemented:

1) Cars

2) Petroleum

3) Computers

4) Pharmaceuticals

5) Gold

- Discuss the likelihood that Pakistan country 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 Pakistan country 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

*Answer:

A country said to have absolute advantage when a country is producing a good with fewer resources than the other country.

and a country said to have comparative advantage if country incuurs less cost in producing a good then other good.

oman mainly import cars, refined petroleum, gold , pharmaceuticals, even parts of computer

In 2017 Oman imported $29.8B, making it the 64th largest importer in the world. During the last five years the imports of Oman have increased at an annualized rate of 1.4%, from $27.7B in 2012 to $29.8B in 2017. The most recent imports are led by Cars which represent 7.42% of the total imports of Oman, followed by Planes, Helicopters, and/or Spacecraft, which account for 4.92%.

therefore it is not much produced in oman itself

and pakistan imports refined petroleum, cars and also pharmaceuticals, computers

In 2017 Pakistan imported $55.6B, making it the 47th largest importer in the world.During the last five years the imports of Pakistan have increased at an annualized rate of 5.1%, from $43.3B in 2012 to $55.6B in 2017. The most recent imports are led by Refined Petroleum which represent 12.6% of the total imports of Pakistan, followed by Crude Petroleum, which account for 5.17%.

threfore we can say that both are comparatively and absolutely low in internatinal trade according to given examples, as both the countries are not making of own its own but importing the maximum

but in comparision of both oman is still in better situation with absolute and comparative analysing.

name oman import pakistan import

refined petroleum 4.8% 13%

cars 7.4% 2.4%

computers 0.52% 0.62%

and many more

Pakistan is trading in pharmaceuticals with Oman.

reference-

for oman-https://oec.world/en/profile/country/omn/

for pakistan-https://oec.world/en/profile/country/pak/

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