International trade occurs because one country enjoys a comparative advantage in the production of a certain good or service, specifically if the opportunity cost of producing that good or service is lower for that country than any other country. Trade allows each country to take advantage _____ than the other country. Options: economics of scale specialization lower opportunity cost. Expert Answer 100% (3 ratings) Before solving this question we need to understand the meaning of comparative advantage A country said to have comparitive a view the full answer. 18 Aug 2020 A trading advantage allows countries to: A) Extend their borders. B) Obtain goods they don't have in exchange for goods they do produce.
Absolute advantage refers to the ability of a country to produce a good more efficiently than other countries. In other words, a country that has an absolute advantage can produce a good with lower marginal cost (fewer materials, cheaper materials, in less time, with fewer workers, with cheaper workers, etc.). Countries go for trade internationally, when there are not enough resources or capacity to meet the domestic demand. So, by importing the needed goods, a country can use their domestic resources to produce what they are good at. Then, the country can export the surplus in the international market.
Successes in one country can influence success in other adjacent countries, which can raise your company's profile in your market niche. It can also help increase your company's credibility, both abroad and at home. This is one of the advantages of international trade that may be difficult to quantify and, therefore, easy to ignore. 10. A trading advantage allows countries to: A. Extend their borders. B. Obtain goods they don't have in exchange for goods they do produce. C. Buy goods for a lower price.
A trading advantage allows countries to: A. Buy goods for a lower price. B. Buy goods at any price. C. Extend their borders. D. Obtain goods they don't have in exchange for goods they do produce. To gain from trade, nations do not need an absolute advantage relative to other nations but a comparative advantage. A comparative advantage is the production of those goods and services that individuals and countries produce more efficiently relative to other possible goods or services. International trade brings a number of valuable benefits to a country, including: The exploitation of a country's comparative advantage, which means that trade encourages a country to specialise in producing only those goods and services which it can produce more effectively and efficiently, and at the lowest opportunity cost.; Producing a narrow range of goods and services for the domestic
A competitive advantage is a term describing attributes that allows a nation to outperform competing nations. These attributes may include access to natural resources, such as high-grade ores or inexpensive power, highly skilled personnel, geographic location, high entry barriers, etc.
Trade creation refers to: a. The redistribution of incomes derived from trade between industries in a country within a regional trade bloc. B. Trade is a global phenomenon that virtually all countries participate in. Even countries that have absolute advantages (i.e. More efficient production processes) in all relevant goods can still profit from trade, as long as they have different opportunity costs.