Under which circumstances would Country X have a comparative advantage in the production of cotton?

Under which circumstances would Country X have a comparative advantage in the production of cotton?

Country X didn’t have to give up a more profitable form of production in order to grow cotton. Interdependence enables specialized production, which is more efficient.

What is an absolute advantage in production?

Absolute advantage is when a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors.

Which country has the absolute advantage in producing cloth?

Japan has absolute advantage in producing both fish and cloth because one worker can produce more of either goods in Japan. Absolute advantage is determined by comparing the absolute productivity in different countries of producing each good.

What does having an absolute advantage at producing a good or service mean give an example?

For example, let’s say you’re entering the job market and you’re evaluating your options for a career. At the same time, your neighbor, Bob, is also evaluating his options. In economics, we say you have an absolute advantage over your neighbor when you can produce a good more efficiently in the same amount of time.

Which circumstances would allow country A to have an absolute advantage over country be in the production of computers?

Country X can manufacture cars more cheaply. Country A would have an absolute advantage over Country B in the production of computers under what circumstance? Companies in Country A can produce computers at a lower cost.

What is one major advantage of globalization apex?

Globalization allows companies to find lower-cost ways to produce their products. It also increases global competition, which drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and already-developed countries live better on less money.

What is absolute advantage example?

Absolute advantage refers to the ability of a country to produce a good more efficiently than other countries. For example, the Canadian economy, which is rich in low cost land, has an absolute advantage in agricultural production relative to some other countries.

How do you find absolute advantage?

To calculate absolute advantage, look at the larger of the numbers for each product. One worker in Canada can produce more lumber (40 tons versus 30 tons), so Canada has the absolute advantage in lumber. One worker in Venezuela can produce 60 barrels of oil compared to a worker in Canada who can produce only 20.

What countries have absolute advantage?

Examples of absolute advantage China, Thailand, and Vietnam, on the other hand, produce and export low-cost manufactured goods. These three countries have an absolute advantage because of their considerably lower unit labor costs.

Which country has an absolute advantage in cloth which country has an absolute advantage in wheat?

False, the US has the absolute advantage in wheat in that it takes less labor to produce a unit of wheat that in the UK. UK has the absolute advantage in clothing for the same reason….

	Wheat	Clothing
United States	3 hrs./unit wheat	9 hrs./unit clothing
United Kingdom	4 hrs./unit wheat	4hrs./unit clothing

Which countries have absolute advantage?

What happens when a country has an absolute advantage in all goods?

Good students of Ricardo understand that trade is about mutually beneficial exchange. Even when one country has an absolute advantage in all products, trade can still benefit both sides. This is because gains from trade come from specializing in one’s comparative advantage.

Can a country ever have an absolute advantage in trade?

For the countries to achieve gains from trade even if one has an absolute advantage in the production of all goods all that is required is that each of the nations has a comparative advantage in some good. b) False. It is impossible for anyone to have a comparative advantage in everything.

When does a country have a comparative advantage?

A country has a comparative advantage when it can produce a good at a lower opportunity cost than another country; alternatively, when the relative productivities between goods compared with another country are the highest. is perhaps the most important concept in international trade theory.

Which is an example of an absolute advantage?

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. The United States, for example, has a skilled workforce, abundant natural resources, and advanced technology.

What is a textile factory decided to use?

A textile factory decides to use electric sewing machines. B. A pipeline is set up to get oil from wells to refineries. C. Diamonds are set aside to use for industrial drills. D. A telephone factory is converted to make computers. B. A pipeline is set up to get oil from wells to refineries.