Explore BrainMass

Explore BrainMass

    Comparative Advantage of India

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Discuss the position of India with respect to the comparative advantage it holds in gems and jewellery, software services, and petroleum.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:44 pm ad1c9bdddf

    Solution Preview

    Please see the attached file.

    The principle of comparative advantage states that a state should specialize in the production or manufacturing of those goods or services in which it has a lower opportunity cost, and trade it with those countries who have a higher opportunity cost for those goods or services. With this arrangement, and having reasonable terms of trade, both the countries can consume at a point beyond their Production Possibilities Frontiers (PPF's). As an emerging world power after China in the global market today, India has many highly developed resources to offer to the world, in which it specialises through its immense natural or human resources. To its own benefit, India has been engaging in production/manufacturing of these goods and services ...

    Solution Summary

    Comparative advantages of India is examined. The position of India with respect is determined.