What are the limitations of comparative advantage, Business Economics

Assignment Help:

What are the limitations of comparative advantage?

Limitations of comparative advantage:

International trade needs wide specialisation. This can have drawbacks as given below:

• Strategic issues: countries turn into dependent on imports of necessaries from other countries. A dispute within one country can halt production into other

• Foreign producers may engage in dumping that is selling output below average cost like part of a predatory pricing contribution pricing strategy. These practices are against WTO rules

• Infant industries argument: Sunrise industries may not be capable to become established when faced with competitors through foreign companies along with lower costs because of greater economies of scale.

• A country might experience the drawback of overspecialisation, involving diseconomies of scale,

• Vulnerability to unexpected changes into demand. All the products include a life cycle. Where a country has specialised within a product consumers no longer desire, structural and unemployment follows.


Related Discussions:- What are the limitations of comparative advantage

What are the advantages to the project manager, What are the advantages to ...

What are the advantages to the project manager in giving regular progress reports to the project team members? People working onto a project as to have an understanding of how

Business enviornment fact-finding, 1. The student is required to research a...

1. The student is required to research a business topic, drawing information from a number of sources, prepare and give a talk to a group, and answer questions. Simply presenting

Is ownership of change important for development, Is ownership of change im...

Is ownership of change important for development? Successful polices depend onto countries owning the process. When the economic reforms required for development are considere

What is effectiveness of international monetary fund, What is effectiveness...

What is effectiveness of International Monetary Fund, in the promotion of development? Effectiveness of International Monetary Fund, in the promotion of development: Interna

Average amount of debt families, The average amount of debt families have i...

The average amount of debt families have is 2.5 times their annual income with a standard deviation 0.75 times their annual income. How much debt does a family have to have (relati

What is the average increase, Question (a) The XYZ Election Commission ...

Question (a) The XYZ Election Commission maintains data showing the voting age population, the number of registered voters, and the turnout for federal elections. The following

What is the infant industry argument, What is the Infant Industry argument?...

What is the Infant Industry argument? Several governments seek to protect involving industries by premature competition. Infant industries have potential comparative benefit b

Money and banking, First, explain the concepts of income, wealth and money ...

First, explain the concepts of income, wealth and money and show how each is related to the other. Next, explain the concept of the monetary base and indicate its economic signific

Conditions of supervision amount specified to a team member, In what condit...

In what conditions might you (1) increase or (2) decrease the amount of supervision specified to a team member? Where a quality problem has been distinguished in an individual’

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd