Question

David Ricardo's comparative advantage theory proposes that nations should specialize in the production of goods and then engage in international trade. Unrestricted free trade between nations raises the economic welfare of countries that participate in free trade. Michael Porter of the Harvard Business School has further developed the idea of comparative advantage by proposing four broad attributes that help impede or promote the comparative advantage of a nation.
1). Which factor helps Bangladesh's goods stay competitive when compared to goods from China?

A). Higher quality goods
B). The U.S. favors Bangladesh goods
C). Easier importation
D). Less tax on Bangladesh's goods
E). Fear of relying on a single country

2). According to Hecksher-Ohlin theory, which of the following gives Bangladesh a cost advantage?

A). Capital-intensive production
B). Technology-intensive production
C). Land-intensive production
D). Labor-intensive production

Answer 1

Answer:

Question 1

The correct answer is "E"

Explanation:

Bangladesh is truly adept at assembling for the material. Its items are modest because of lower cost and higher edges. It is preferred by the American organizations as the item gives lower costs and higher edges. It is getting rivalry from the China henceforth it has the dread of losing the business. So it has dread that the countries won't purchase its item. That is the reason Bangladesh's products remain serious when contrasted with merchandise from China.  

Question 2

The correct option is "D"

Explanation:

Bangladesh is a poor nation thus work cost is exceptionally modest. Capital, innovation, and land are better in different nations too. Be that as it may, work cost is high than Bangladesh.