Asked by
Audrey Musil
on Dec 08, 2024Verified
Refer to Table 20.5. ________ has a comparative advantage in tea and ________ has an absolute advantage in tea.
A) India; neither
B) Neither; neither
C) Vietnam; neither
D) Vietnam; India
Comparative Advantage
The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.
Absolute Advantage
The ability of an entity to produce more of a good or service with the same amount of resources than another entity.
- Understand the principles of absolute and comparative advantage in global commerce.
- Assess the foundational concepts that govern global commerce in light of comparative and absolute advantage theories.
Verified Answer
GW
Learning Objectives
- Understand the principles of absolute and comparative advantage in global commerce.
- Assess the foundational concepts that govern global commerce in light of comparative and absolute advantage theories.
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