This topic contains a solution. Click here to go to the answer

Author Question: In a short essay, explain the Absolute Advantage principle. Provide an example of the principle at ... (Read 149 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
In a short essay, explain the Absolute Advantage principle. Provide an example of the principle at work.
 
  What will be an ideal response?

Question 2

A global market segment can best be defined as which of the following?
 
  A) an international group of customers with common characteristics
  B) a group of demographically similar customers from one country
  C) a group of customers with similar economic backgrounds
  D) an international group of customers with disposable income



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

yeungji

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

Adam Smith's absolute advantage principle states that each country benefits by producing only those products in which it has an absolute advantage, allowing it to specialize in those products that it can produce at a lower cost than other countries and exporting them, and then importing other products it needs. Thus, each country increases its welfare by specializing in the production of certain products and importing others.

A modern example of the principle at work involves the nations of Japan and Saudi Arabia. Japan has no natural holdings of oil, but it manufactures some of the best automobiles in the world. On the other hand, Saudi Arabia produces much oil, but it lacks a substantial car industry. Given the state of their resources, it would be wasteful for each of these countries to attempt to produce both oil and cars. By trading with each other, Japan and Saudi Arabia each employs its respective resources efficiently in a mutually beneficial relationshi

Answer to Question 2

A




bobypop

  • Member
  • Posts: 539
Reply 2 on: Jul 7, 2018
:D TYSM


Mochi

  • Member
  • Posts: 300
Reply 3 on: Yesterday
Gracias!

 

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Thyroid conditions may make getting pregnant impossible.

For a complete list of videos, visit our video library