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Advantages of Countries Specializing in Specific Industries


Explain the advantages of countries specialising.


Market Structures and Competition

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I. 🍃Introduction
- Definition of comparative advantage
- Importance of comparative advantage in international trade

II. Factors influencing comparative advantage
- Factor endowment
- Productivity

III. Benefits of comparative advantage
- Reduced average costs
- Increased output/income/GDP
- Improved quality of output
- Raised living standards

IV. Explanation of benefits
- Influenced by factor endowment
- Productivity can be increased
- More price competitive
- Increased speed of production
- Practice makes perfect

V. 👉Conclusion
- Recap of benefits
- Importance of embracing comparative advantage in international trade.

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