1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arisa [49]
10 months ago
13

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

Business
1 answer:
algol [13]10 months 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

You might be interested in
g The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and prod
almond37 [142]

Answer:

$7.20

Explanation:

Given the following :

FINISHING department :

overhead budget = $550,000

direct labor HOURS = 500,000

PRODUCTION department :

overhead budget = $400,000

direct labor hours = 80,000

Predetermined allocation rate for finishing department :

Overhead / allocation base = ($550,000 / 500,000) = $1.10 per direct labor hour

Predetermined allocation rate for production department :

Overhead / allocation base = ($400,000 / 80,000) = $5 per direct labor hour

If the budget estimates that a desk lamp will require 2 hours of finishing and 1 hour of production:

Finishing department :

(2 × Predetermined allocation rate for finishing department)

= (2 × $1.10) = $2.20

Production :

(1 × Predetermined allocation rate for production department)

= (1 × $5). = $5

Total = ($2.20 + $5) = $7.20

3 0
3 years ago
Under an operating lease: (Select all that apply.)Check All That ApplyThe lessee reports amortization expense and interest expen
Alja [10]

Answer:

  • The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.
  • The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.

Explanation:

An operating lease is basically renting an asset from a lessor where the lessee will pay a certain amount every period for the use of the asset.

This rent payment is equal to the interest expense plus amortization expense and will be reported in the income statement of the lessee as an expense.

This amount will also be reported on a straight-line basis for the duration of the lease term which means that even if rent increases, it will still have to be reported by the same amount over the lease period because the lease increase should have been taken into account already.

The lessor also reports lease revenue on a straight-line basis over the lease term.

3 0
3 years ago
"Mr. Tudor," said Judy, "Tom Pritchett suggested I contact you about our new computerized Civil War reenactment game." In this e
Grace [21]

Answer:

Referral

Explanation:

Referral is the term which is described as the act or way of telling someone  or a person regarding the positive features or attribute of the business or the person, who is being referred by the person.

For example, referral is telling someone or person that the certain business or the person having a good product or the service, and then that person visit the place.

Under this scenario, Tom referred Tudor to contact them regarding the new game. So, it is an example which the Judy uses referral method or way with Tudor.

6 0
2 years ago
Entitlement culture is the idea that __________________________. a. basic salaries are extra pay for sales performance rather th
Lunna [17]

Answer:

The correct answer is letter "D": bonuses are deferred salary rather than extra pay for extra sales performance.

Explanation:

In the corporate world, entitlement culture refers to the workers' beliefs that they deserve a series of privileges. This tends to happen during growth periods. Employees assume that the optimal situation of the firm has to do with their performances then, the organization owes them.

An idea that is commonly spread under such a scenario is that bonuses and commissions are deferred salaries and not extra payment for outstanding performance.

3 0
3 years ago
What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry? a. ​decreased price
Shkiper50 [21]

Answer:

The correct answer is letter "B": ​Increased price elasticity of demand for the DVD player industry because XBOX are substitutes.

Explanation:

Price elasticity of demand reflects the changes in quantity demanded for a good or service as a result of changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1) the demand is elastic.<em> It means a minimum change in price has a major impact on the quantity demanded volume. </em>

Thus, <em>if XBOX implements DVD features, DVD players will face an increase in their price elasticity of demand because changing DVD players' prices could change their quantity demanded by far because consumers will prefer purchasing an XBOX which is a substitute.</em>

7 0
3 years ago
Other questions:
  • Identify each of Knox​ Industries' transactions listed below as operating​ (O), investing​ (I), financing​ (F), noncash investin
    9·1 answer
  • Why would a monarch from one country be interested in hiring an explorer from a foreign country?
    9·1 answer
  • Brandon Ramirez wants to set up a scholarship at his alma mater. He is willing to invest $320,000 in an account earning 11 perce
    7·1 answer
  • Which government agency is responsible for preparing a budget proposal for the president to submit to congress
    15·2 answers
  • As a consumer eats additional pieces of pizza, total utility will _____.
    11·1 answer
  • A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV) rule in the current period dis
    7·1 answer
  • ALL ABSURD OR INCORRECT ANSWERS WILL BE REPORTED!!!!
    7·2 answers
  • What is one advantage of starting a business in hard times
    8·2 answers
  • All the airlines that fly to the island country of Klerwada distribute tourist information pamphlets in their flights. These pam
    6·1 answer
  • Pick the correct statement related to bid price from below. Multiple Choice The bid price is the price you must charge to break
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!