Share
Explore BrainMass

Trade Theories

What cultural, physical, economical, financial, and political impediments might prevent the successful application of absolute advantage trade theory?

Solution Preview

What cultural, physical, economical, financial, and political impediments might prevent the successful application of absolute advantage trade theory?

The absolute advantage trade theory asserts that the ability of a country to produce a particular good with lower resources than another person or country. Absolute advantage refers to the ability to produce more of a given product using a specified amount of resources. This theory was proposed by Adam Smith.
There may be several cultural impediments that may prevent the application absolute advantage trade theory. For example, a country may have an abundance of labor however social status may ...

Solution Summary

This explanation provides you a comprehensive argument relating to Trade Theories

$2.19