Analyse why a country could have lower production costs for a particular good than another country

The country may have a more educated and skilled labour force. This leads to higher productivity and lower wastage

The country may have more capital goods may use more advanced technology lower capital costs

The country's firms may be producing on a larger scale taking greater advantage of economies of scale example

The country's government may subsidise the product or impose fewer taxes on the product

The country may specialise in the product

The country may have easier access to raw materials and natural resources or so raw materials and natural resources may be cheaper

The country may have a large supply of labour with low wage rates

The country may have low transport costs due to good infrastructure

The country may have a more favourable climate to produce the product

The country may have a lower inflation rate than other countries

The country may have a lower minimum wage lowering wages cost

The country may have weaker trade unions reducing bargaining power

The country may have a stronger currency causing the lower cost of importing raw materials