What Gives A Country A Comparative Advantage Apex?

It is being able to produce goods by using fewer resources, at a lower opportunity cost

, that gives countries a comparative advantage. Increasing the production of one good means that less of another can be produced.

What is a country comparative advantage?

Comparative advantage is an

economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners

. … Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in.

What gives a country a comparative advantage Brainly?

The correct answer would be,

The lower opportunity Cost

. The lower opportunity cost gives a country a comparative advantage. Explanation: When a country can produce a good or service at a lower cost than the other country, this is called the comparative advantage for that country.

What gives a country a comparative advantage answers?

In economic terms, a country has a comparative advantage

when it can produce at a lower opportunity cost than that of trade partners

. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.

What gives a person a comparative advantage?

A person has a comparative advantage at

producing something if he can produce it at lower cost than anyone else

. Having a comparative advantage is not the same as being the best at something.

What is international trade based on?

International trade is

the exchange of capital, goods, and services across international borders or territories

because there is a need or want of goods or services. … When trade takes place between two or more states factors like currency, government policies, economy, judicial system, laws, and markets influence trade.

Which situation best illustrates the concept of absolute advantage?

A factory in Vietnam

has an absolute advantage because it can produce shoes at a lower cost than others. Absolute advantage makes the factory more competitive in the market than its rivals.

What is an example of a comparative advantage?

Comparative advantage is

what you do best while also giving up the least

. For example, if you’re a great plumber and a great babysitter, your comparative advantage is plumbing. That’s because you’ll make more money as a plumber.

What are the four main sources of comparative advantage?

Comparative advantage is determined by a country’s resources, that is the

land, labour, capital and enterprise

.

When a country has a comparative advantage in the production of a good?

Transcribed image text: When a country has a comparative advantage in the production of a good, it means that

it can produce this good at a lower opportunity cost than its trading partner

. Then the country will specialize in the production of this good and trade it for other goods.

What is David Ricardo’s theory of comparative advantage?

Among the notable ideas that Ricardo introduced in Principles of Political Economy and Taxation was the theory of comparative advantage, which

argued that countries can benefit from international trade by specializing in the production of goods for which they have a relatively lower opportunity cost in production even

…

How do countries know when they have a comparative advantage in the production of a good quizlet?

Countries have a comparative advantage in production when

they can produce a good or service at a lower opportunity cost than other producers

. Countries are better off if they specialize in producing the goods for which they have a comparative advantage.

What is comparative advantage quizlet?

Comparative Advantage.

The ability of an individual firm or country to produce a good or service at a lower opportunity cost than competitors

. Opportunity Cost. The highest valued alternative that must be given up to engage in an activity.

What products does the Philippines have a comparative advantage in?

Although the Philippines have a comparative advantage in

rice production

, exports were unprofitable for the government-marketing agency in 1977 to 1979. Government control of exports puts a barrier between world and domestic markets so that world quality premiums are not reflected in domestic prices.

What are the advantages of international trade?

• Increased revenues. …
• Decreased competition. …
• Longer product lifespan. …
• Easier cash-flow management. …
• Better risk management. …
• Benefiting from currency exchange. …
• Access to export financing. …
• Disposal of surplus goods.

What are the advantages and disadvantages of international trade?