Asked by
brittany strother
on Oct 12, 2024
Verified
If nations trade on the basis of comparative advantage
A) a nation can usually gain only it has an absolute advantage.
B) all trading partners share equally in the gain.
C) all trading partners share in the gain with distribution determined by their negotiating ability.
D) a nation with an absolute advantage gains more than the other nations.
Comparative Advantage
The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, leading to more efficient trade and production patterns.
Absolute Advantage
A situation in which a country, individual, or company can produce a particular good or service more efficiently than another party, using the same amount of resources.
Trade
Trade involves the exchange of goods, services, or both between parties, which can be at the domestic or international level, fostering economic interaction and integration.
- Expound on the favorable outcomes and potential downsides of narrowing focus to specialized areas and engaging in trade activities.
- Acquire knowledge on the standards for involvement in international trade guided by the concept of comparative advantage.
Verified Answer
RR
Learning Objectives
- Expound on the favorable outcomes and potential downsides of narrowing focus to specialized areas and engaging in trade activities.
- Acquire knowledge on the standards for involvement in international trade guided by the concept of comparative advantage.