When compared with China, the growth of clothing exports originating in Bangladesh clearly illustrates the difference between absolute and comparative advantage. Discuss and explain
What will be an ideal response?
While Bangladesh has an absolute disadvantage in clothing (and, on average everything else), the country has a comparative advantage in clothing manufacture and export. Exports of clothing from Bangladesh have consequently surpassed those from China.
You might also like to view...
________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business
A) Deliberate dumping B) Ravaging dumping C) Voracious dumping D) Predatory dumping
U.S. antitrust laws view monopolies as undesirable because
A) monopolies restrain trade and promote inefficiencies. B) monopolies create inferior products. C) monopolies produce only capital goods. D) monopolies produce only cheap, low quality goods.
Contrast the economic experience of the HPAE with the experience in Latin America, especially with regard to the 1980s and in terms of weathering financial crises
What will be an ideal response?
Define risk aversion and give an example of a risk-averse person?
What will be an ideal response?