Why countries do are indulged in trade?, International Economics

Countries are indulged in trade because there are mutual gains from trade. But then, what are these gains which they obtain, and how are these realized? Comparative advantage theory provides the answers to such questions. The theory says that countries will gain by specializing in it and then exporting the good they have a comparative advantage or lower opportunity of the cost advantage in.

Posted Date: 7/19/2012 4:14:54 AM | Location : United States







Related Discussions:- Why countries do are indulged in trade?, Assignment Help, Ask Question on Why countries do are indulged in trade?, Get Answer, Expert's Help, Why countries do are indulged in trade? Discussions

Write discussion on Why countries do are indulged in trade?
Your posts are moderated
Related Questions
Question : (a) What are the rationales for interest and currency swaps? (b) Suppose a Swiss firm, SandyCom Ltd, wants to invest in the U.S. The Swiss firm needs US dollars


The first African Economists Congress organized by the African Union concentrated on the creation of a monetary union and the introduction of single currency in Africa. (a) Ref

Q. Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run. Assume that the U.S. real national income is constant. A raise in

Q. Evaluate the Argentinean Convertibility Law of April, 1991. Answer: Excellent idea in the short run disastrous idea in the long run. The law was discarded only in Ja


Explain Theoretical and methodological aspects of international economic relations

Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p

the difference between offer curve analysis ,absolute and comparative advantage model

The Emergence of the Modern Information Regulatory Environment: Task 1 Given the perceived long-standing benefits of latent information policy formulation in the United S