An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). Are there in fact gains from trade for the world as a whole? Explain.

Question

07-03-2020
Business

contestada

An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). Are there in fact gains from trade for the world as a whole? Explain.

Respuesta :

Otras preguntas

Write the planning process for a profession.

The minimum mark to obtain a Grade A is 75. Cheryn managed to achieve an average of Grade A for three of her English quizzes. What is the minimum mark she score

what one thing you have learnt form the downfall of the Mughal Empire? sensible answer needed

What is the area of the shaded region?

what number is 11 less than the other number if there's some is increased by 8 the result is 71 find the numbers

Please read the article Why Cats Have Nine Lives by Jared Diamond. Our analysis did not attempt to answer the question of "Why" cats survive they way they do fr

Help needed!!! Find the length of the segment indicated. A. 12.1 B. 16.4 C. 13.3 D. 11.4

the few pages of your textbook are numbered with roman numerals. which two pages display information on unit 1

How does the energy transmit through different sized gears?

Algebra II Part 1 On your paper, graph these coordinates: (-1, 1), (-5, 2) Type the correct equation of the line. Note: Do not use fractions in your answer.

mandhlelaz mandhlelaz · Answer 1 · 2020-03-11T03:16:55+01:00

Answer:There are gains from trade but the distribution of these gains may not be the same for everyone

Explanation:There are some correlation between economic growth and trade.

Global economics intergration may be a potential factor that causes trade to affect economic growth positively.

When there is global intergration companies learn to adopt new technologies and those which doesn't may phase out ,dynamic firms which can export to the world experience an increase in demand and this lead to these companies gaining the advantage of operating on larger scale where price per unit product becomes lower. This means the company isnt restricted to their country of origin.

They can also lean and be innovative as they obtain more experience from exposures to certain technologies and adopt those technologies and certain standards that make these company compete efficient.