Author: fin22

No Transaction Costs: In the real world, there often are transaction costs that include transportation costs, tariffs, and so on, which reduce the size of the benefits of comparative advantage.... Read More

For instance, if country A is able to manufacture 100 tons of wheat with the same resources for which country B can make only 50 tons, then it means that...... Read More

Comparative advantage is actually the cost of producing another good more than the first due to another producer. A party may have an absolute advantage in producing both goods, but...... Read More

Both countries have the same opportunity costs, but the decision comes down to specialization based on the good they can produce more efficiently relative to the other. Country A has...... Read More

It enables access to more varied goods and, thereby improves consumers\' choice and their level of living standards. Growth in and development of economics can also be achieved due to...... Read More