Comparative theory - what necessary
As you have learned in this unit, the theory of comparative advantage underlies international trade. A nation has a comparative advantage in the production of a good if it can produce it at a lower opportunity cost than its trading partner s. This means that the nation does not have to be the most efficient in the production of the good, but it must be least inefficient in its production. This theory explains why advanced economies such as the United States still import many goods from nations which have more primitive technology, less capital, and lower-skilled labor forces. Though some of these nations may be absolutely worse in the production of all goods than the U. Presuming that international trade is efficient and relatively free of barriers, current trade patterns should indicate the comparative advantages among nations. Links to an external site. Census Bureau data on international trade flows between the United States and other countries. comparative theory
Differentiate these views and support your findings with additional academic references.
Post navigation
Assume the log-normal model for S, the price of KBM in year. Assume Read more…. What is the comparatibe of security A to the market given the comparative theory information? Write blog posts. Imagine that you work for Southwest Airlines and have been asked to write a few entries on their Nuts About Southwest blog.
Write three short posts about 50 words each. Write one Read more….
Categories: Finance. Related Posts Finance 4.
Finance Write blog posts. Imagine that you work for Southwest Airlines and have been asked to write a few… Write blog posts.]
In my opinion you are not right. Let's discuss. Write to me in PM.
Bravo, very good idea
Very amusing opinion