Ecuador
is the largest exporter of bananas in the world and its share of world banana trade is on the increase. Exports expanded from one million tonnes in 1985 to 3.6 million tonnes in 2000.
Which region is most likely to export bananas?
Ecuador
is the largest exporter of bananas in the world and its share of world banana trade is on the increase. Exports expanded from one million tonnes in 1985 to 3.6 million tonnes in 2000.
What role does competition play in international trade quizlet?
What role does competition play in international trade?
It drives down prices for consumers
.
Why does the US import oil quizlet?
The United States is said to have an absolute advantage in producing food compared with Japan. … Why does the US import oil?
because it does not produce enough oil
.
Which
is an example of a country that is overly dependent on another country for critical goods and services?
What kind of advantage does a country have if it can make a product?
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 is it called when a country is able to produce more than another country?
Absolute advantage
describes a situation in which an individual, business or country can produce more of a good or service than any other producer with the same quantity of resources.
What statement best describes how globalization is affecting the world?
The correct answer is letter B:
The world is becoming more globalized and connected
.
Is the best example of a country that is dependent on other countries?
The best example of a country that is dependent on other countries is
a country that has very little or less fertile soil to make its resources
.
How can a nation benefit from effectively exporting its goods?
How can a nation benefit from effectively exporting its goods?
Its businesses can invest in the future.
have fewer economic restrictions.
Why does the United States import most of the oil that it uses?
Oil production, refining and demand can differ geographically. A main reason why the U.S. continues to import crude oil and refined products is that
much of the infrastructure to produce oil, as well as refine and transport fuels
, is in the mid-continent and U.S. Gulf Coast regions.
What is an example of a country that is overly dependent on another country for critical goods and service?
Which is an example of a country that is overly dependent on another country for critical goods? Answer:
a country that imports all of its oil.
When a country has an absolute advantage?
Absolute advantage refers to the
ability of a country to produce a good more efficiently than other countries
. In other words, a country that has an absolute advantage can produce a good with lower marginal cost (fewer materials, cheaper materials, in less time, with fewer workers, with cheaper workers, etc.).
In what circumstances might a country not benefit from trade with another country?
If a trade was bad
, the countries simply reject it, it is a consensual trade. First, if the opportunity costs are equal between the two countries, there is nothing to gain from specialization, the countries are identical and there is no benefit from producing the good abroad rather than at home.
Why do countries not completely specialize?
In the real world, specialization is not complete. Why do countries do not completely specialize? –
Because not all goods are traded internationally
. … – Because production of most goods involves increasing opportunity costs.
Which situation is best example of opportunity cost?
It is the important concept in economics and also the relationship which is between choice and scarcity. A good example of opportunity cost is
you can spend money and time on other things but you can not spend time reading books or the money in doing something which can help
.
Why do countries trade with each other?
Countries trade with each other when,
on their own
, they do not have the resources, or capacity to satisfy their own needs and wants. By developing and exploiting their domestic scarce resources, countries can produce a surplus, and trade this for the resources they need.
