'Different opportunity costs' diaporamas de présentation

Comparative Advantage, Absolute Advantage, Specialization and Trade

Comparative Advantage, Absolute Advantage, Specialization and Trade. Comparative Advantage. A situation in which a person or country can produce a specific product at a lower opportunity cost than some other person or country This is the basis for specialization and trade Example:

663 views • 32 slides

Comparative Advantage and Globalization

345 views • 16 slides

Absolute Advantage

Absolute Advantage. With a given amount of resources Australia can produce 30 units of wheat and 20 units of cloth. While China can produce 5 units of wheat and 25 units of cloth.

295 views • 11 slides

Chapter 9

Chapter 9. Application: International trade. Outline. Trade can make everyone better off Principle of comparative advantage Gains and losses from trade Effects of a tariff and import quota on trade Implications for trade policy Arguments for restricting trade . Recap: Gains from Trade.

416 views • 8 slides