What matters most in determining the efficient distribution of production over the world is quizlet?
labor costs are too high in some countries to efficiently produce goods. What matters most in determining the efficient distribution of production over the world is: A. absolute advantage.
How do you determine which country has a comparative advantage in the production of a good?
A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods. Countries that specialize based on comparative advantage gain from trade.
What does it mean if one country is more efficient in the production of all goods?
Absolute advantage describes a situation in which an individual, business or country can produce more of a good or service than any other producer with the same quantity of resources. The United States, for example, has a skilled workforce, abundant natural resources, and advanced technology.
When nations increase production in their area of?
When nations increase production in their area of comparative advantage and trade with each other, both countries can benefit. Again, the production possibility frontier is a useful tool to visualize this benefit. Consider a situation where the United States and Mexico each have 40 workers.
Under what circumstances would it most likely be considered beneficial for a government to be a large borrower of foreign investment capital group of answer choices?
Under what circumstances would it most likely be considered beneficial for a government to be a large borrower of foreign investment capital? A country's trade in manufactured goods diminished substantially, causing it to lose tax revenue and become a net borrower of foreign funds.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
Which of the following would be expected if the tariff on foreign-produced automobiles were increased? The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
What determines comparative advantage?
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else.
What is comparative advantage and how does comparative advantage for a particular country determine what that country produces and trades with other countries?
Comparative advantage refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or quality. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products.
What kind of advantage does a country have if it can make a product more efficiently quizlet?
Absolute advantage means a country has a monopoly on a certain product or can produce the product more efficiently than any other country. There are few examples of absolute advantage in the global market today.
How can a nation that is less efficient than another nation in the production of all commodities export anything to the second nation?
A less efficient nation can also export to the more efficient nation by implementing and incorporating competitive advantage in its international trade policies.
Which of the following factors according to Porter is most likely to give a country competitive advantage over another country?
Which of the following factors, according to Porter's national Diamond, is most likely to give a country competitive advantage over another country? Skilled Labor. Porter argues that a nation's firms gain competitive advantage if _____________________________.
Which is the best measurement to use to determine who might have the absolute advantage?
Which is the best measurement to use to determine who might have the absolute advantage? when one producer is able to produce a competitive product using fewer resources, or the same resources in less time. Looking at a graph– who produces the most for the most money- who is going to make the most profit overall.
What is the most important reason for a country to encourage foreign investment?
The most important reason to encourage foreign investment is to accelerate the development of an economy. An increasing number of countries are encouraging foreign investment with specific guidelines aimed toward economic goals .
How is a country’s economic well being enhanced through free international trade in goods and services?
How is a country's economic well-being enhanced through free international trade in goods and services? It is mutually beneficial for two countries to each specialize in the production of the goods that it can produce relatively most efficiently and then trade those goods.
Which of the following would be expected if the tariff on foreign produced goods were decreased?
Which of the following would be expected if the tariff on foreign-produced shoes were decreased? The domestic price of shoes would fall.
Which of the following would result from a US tariff on imported cars?
Step 1. An increase in the price paid for cars in the U.S. is a consequence of U.S. tariff on imported cars. The correct answer is.
When determining comparative advantage one must determine?
Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.
How is comparative advantage determined quizlet?
Comparative advantage is determined by the opportunity cost of production.
What kind of advantage does a country have it can make a product more efficiently?
What kind of advantage does a country have if it can make a product more efficiently? an absolute advantage.
When a country produces a specific product or service more efficiently than any other country?
The concept of absolute advantage was developed by 18th-century economist Adam Smith in his book The Wealth of Nations to show how countries can gain from trade by specializing in producing and exporting the goods that they can produce more efficiently than other countries.
How could a country that is the most least efficient producer of everything gain from trade?
How could a country that is the most (least) efficient producer of everything gain from trade? Countries use finite resources to produce what they are most productive at (compared to their other production choices), then trade those products for goods and services that they want to consume.
Which one of the following best describes the contribution of Porter’s theory of competitive advantage?
Which one of the following best describes the contribution of Porter's theory of competitive advantage? Answers: a. It stresses the importance of home demand in a national environment.
What are factor conditions in Porter’s Diamond?
Factor conditions include the nation's production resources, including infrastructure, labor force, land, and natural resources. According to Porter, "a nation does not inherit but instead creates the most important factors of production—such as skilled human resources or a scientific base".
Which is more important in determining trade patterns absolute advantage or comparative advantage?
Comparative advantage helps in more effective decision-making for countries for resource allocation and production hence more beneficial for economies than an absolute advantage.
Which calculation helps determine which producer has the absolute advantage?
Which calculation helps determine which producer has the absolute advantage? Amount produced minus resources used.
What are important factors when a firm is considering entering a foreign market through the use of FDI?
What are important factors when a firm is considering entering a foreign market through the use of FDI? Management expertise and relative risk in the foreign market. Compare the challenge of product standardization for industrial products versus consumer products.
What are three factors that impact a company’s decision to invest in a country?
Economic growth (changes in demand) Confidence/expectations. Technological developments (productivity of capital)
How important is the international trade especially to the developing countries?
Trade is central to ending global poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people. Open trade also benefits lower-income households by offering consumers more affordable goods and services.
How do consumers all benefit from international trade they profit from global outsourcing?
Trade promotes economic growth, efficiency, technological progress, and what ultimately matters the most, consumer welfare. By lowering prices and increasing product variety available to consumers, trade especially benefits middle- and lower-income households.
Which of the following would be expected if the tariff of foreign-produced automobiles were increased?
Which of the following would be expected if the tariff on foreign-produced automobiles were increased? The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.