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Arisa [49]
1 year ago
13

What is comparative advantage and why is it important in international trade ?

Business
1 answer:
algol [13]1 year ago
6 0

Based on the international trade concept, comparative advantage is the ability to produce goods at a cheaper cost than competitors, and it is important in international trade because it enhances resource allocation.

<h3>What is Comparative Advantage?</h3>

Comparative advantage is a term that is used to describe the country's capacity to manufacture a specific good or service at a lower opportunity cost than its trading partners.

Usually, Comparative advantage is utilized to explain why companies, countries, or individuals can profit from the trade.

<h3>Importance of International trade</h3>
  • It helps countries to allocate resources for more gains
  • It helps countries to produce goods at a cheaper cost
  • It helps the country to specialize in production sectors they have more advantages.
  • It helps countries to improve their exportation income.

Hence, in this case, it is concluded that comparative advantage is beneficial to countries when it comes to production in international trade.

Learn more about Comparative Advantage here: brainly.com/question/12291750

#SPJ1

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a) Determine a minimum inventory production plan (i.e., one that allows arbitrary hiring and firing). b) Determine the productio
PIT_PIT [208]

Answer:

Hello your question is incomplete attached below is the complete question

answer:

A) 32 units ( number of units per month per worker )

B) number of workers required = 975 / 32 ≈ 31

c) mean of the two values = 138 + 41 ) / 2 = $89.50

Explanation:

A) Determine a minimum inventory production plan ( i.e. one that allows arbitrary hiring and firing )

The number of units per month per worker = 32 units

To have a minimum/least inventory; production plan  = demand by hiring or firing

of employees

<em>attached below is the table </em>

B)  determine the production plan that meets demand but does not hire or fire workers during the six-month period

To determine this production plan we have to find the per month production = (Total demand - beginning inventory ) / 6

                   = ( 6350 - 500 ) / 6  = 975 units produced

number of workers required = 975 / 32 ≈ 31

C) Calculate The cost of subcontracting needed to beat the cheaper of the two options above

regular cost = 8 * 5 = $40

we will keep 30 workers in order to determine how much subcontracting is needed and the maximum and minimum value of each unit is kept hence the overall cost <  $253900.

if subcontracting cost = $138  then total cost = $253820

If subcontracting cost = $41  then total cost = $245090.

Therefore mean of the two values = 138 + 41 ) / 2 = $89.50

D) subcontracting cost of $50 formulating a LP and solve to optimality for the constraints of this problem

Z <= (Y+1)*7680 , X + 32Y >= 5850

6 0
3 years ago
According to Mercutio, what is the "real" Romeo like? whiny, moping outgoing, witty, and sociable complex, intelligent, and deep
Mumz [18]
The following choices are:

A. whiny, moping 
<span>B. outgoing, witty, and sociable </span>
<span>C. complex, intelligent, and deeply sensitive </span>
<span>D. businesslike and straightforward
</span>
The correct answer is letter B. outgoing, witty and sociable. Mercutio himself likes the Romeo who is Romeo compared for the ones that is pined Rosaline.

<span> </span>

5 0
4 years ago
A stock has a beta of 1.3 and an expected return of 12.8 percent. a risk-free asset currently earns 4.3 percent.
BigorU [14]
The expected return on this portfolio will be given by:
E[P]=Rf+(E[Rm]-Rf)β
Where:
Rf=Risk Free interest rate
Rm=Return on the market portfolio
β= Market Beta
The return on our portfolio will be:
E[p]=0.043+(0.128-0.043)0.013
=0.043+0.085*0.013
=0.044105
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6 0
4 years ago
Question 6 you are part of a group making a decision about whether it is appropriate to discontinue research on a new drug. this
Mila [183]

Such a person would be making an intuitive decision.

8 0
3 years ago
Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommo
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Answer:

$236,250

Explanation:

The computation of external financing is shown below:-

For computing the external financing first we need to find out the retained earning which is shown below:-

Net income = Sales × Profit margin

= $2,500,000 × 15%

= $375,000

Increase in retained earning = Net income - Dividends

= $375,000 - ($375,000 × 35%)

= $375,000 - $131,250

= $243,750

External financing = Increase in assets - Increase in retained earning

= $480,000 - $243,750

= $236,250

8 0
3 years ago
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