According to ricardo theory of comparative advantage
Course:- Operation Management
Reference No.:- EM131146256

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Operation Management

Suppose there are two countries of equal size, Northampton and Southampton. Both countries both produce and consume two goods: food and clothes. If both countries used all their resources to produce only food, Northampton would produce 50 tons while Southampton would produce 400 tons. If both countries used all their resources to produce only clothes, Northampton would produce 100 tons while Southampton would produce 200 tons. According to Ricardo’s theory of comparative advantage, what should these countries do in order to maximize their own ability to consume clothes and food? Should they specialize in any one product? If so, which country should specialize in what product? Should they trade with each other?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Operation Management) Materials
Your customer will immediately transfer funds to your bank account on receipt of the shipment. What is your total cost if you use the ground carrier? The air carrier? What o
Consider a workplace privacy policy. What do you think it should look like, i.e., what would you include? Should you include monitoring employee's Internet activity, why or wh
Identify at least four forces in the general environment of organizations and provide an example of each for an industry or business. How do these forces differ from the exter
Assume the identity of the subordinate and the manager. Answer this question for each person: “What purpose can performance appraisal and feedback serve for me?” Are the purpo
high order needs become less impotrant as indivdual move up the corporate ladder/5. higher-order needs become more imporant as indivuals move up the crporat ladder/which of
Customers arrive at Rich Dunn's Salon at the rate of 3 per hour, distributed in a Poisson fashion. Rich can cut hair at s rate of 5 per hour, distributed exponentially. Find t
The term marketing mix refers to a unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target mar
Assuming that you were running a successful consulting practice as a sole proprietor, what would induce you to change the legal form to a corporation? What is the importance o