Explains the economic cost of most international trade less than the economic benefit of that trade for both the companies and countries involved using trade and comparative advantage economic theories. Three paragraphs totaling 360 words.© BrainMass Inc. brainmass.com October 25, 2018, 7:14 am ad1c9bdddf
Countries are good at making different things. This might be the result of human skills or natural resources. So, to simplify, if there were only two goods X & Y and two countries A and B, each will produce each good with a different expense of resources. To simplify let's say that the only resource is labor.
If Country A is relatively better at producing X than Y (when compared to Country B, which is relatively better at producing Y than X- i.e comparative advantage), then that means that if it ...
International trading system, unequal economic size question
Questions I need some help with:
1.Who gains more from trade when nations are of unequal economic size? Give an example.
1.What are the two main challenges of the international trading system? How have these concerns been negotiated among trading partners?View Full Posting Details