What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.
What will be an ideal response?
When a country has an absolute advantage, that country has the ability to produce a specific product more efficiently than every other nation. A comparative advantage occurs when a nation has the ability to produce a specific product more efficiently than all other products. Every country has a comparative advantage in some product while it is not true that every country has an absolute advantage over every other country.
You might also like to view...
An experienced operations manager can tell at a glance whether an item should be classified as safety stock, anticipation inventory, or cycle stock
Indicate whether the statement is true or false
What standard does a court use in reviewing the factual determinations of an administrative agency?
A) Whether the adjudication was arbitrary and capricious. B) Whether the conclusions reached are supported by substantial evidence. C) Whether the agency has conducted an adjudication with inadequate fact-finding procedures or whether issues that were not properly before the agency were decided. D) Any one of these, depending on the particular situation.
Zetovi Corp. is a multinational communications and information technology company. It manufactures smartphones and other cell phone accessories. The company launched a range of tablets in the market, and it becomes an instant hit. The company then experiences a drastic decline in the sales of its smartphones as a large section of its customer base shifts to tablets. Which of the following concepts is being illustrated in this scenario?
A. Segmentation B. Cannibalization C. Market penetration D. Product bundling
Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.Rent on the administrative office space is:
A. a product cost B. a variable cost C. an opportunity cost D. a period cost