Advantages of Countries Specializing in Specific Industries
Explain the advantages of countries specialising.
Market Structures and Competition
Frequently asked question
- Definition of comparative advantage
- Importance of comparative advantage in international trade
II. Factors influencing comparative advantage
- Factor endowment
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
- Recap of benefits
- Importance of embracing comparative advantage in international trade.
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