Canada has the comparative advantage in producing cell phones. If it seems counterintuitive that Koreans should import cell phones from Canada even though they can produce more cell phones per hour of work, think about the opportunity cost to each country of producing each good.
Which country has comparative advantage?
For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows. China has a comparative advantage in electronics because it has an abundance of labor.
Does Canada have an absolute advantage?
Examples of absolute advantage
The Canadian economy has an absolute advantage in agricultural goods relative to most other countries globally. This because land is relatively abundant in Canada, as well as low cost. China, Thailand, and Vietnam, on the other hand, produce and export low-cost manufactured goods.
What are 3 advantages of Canada trading with other countries?
Specialization, Comparative Advantage, and Gains from Trade.
Does every country have a comparative advantage?
In international trade, no country can have a comparative advantage in the production of all goods or services. In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners.
What is a good example of comparative advantage?
For example, if a country is skilled at making both cheese and chocolate, they may determine how much labor goes into producing each good. If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.
What is China’s comparative advantage?
China’s comparative advantage is manufacturing, and there’s no shortage of policies that support this, from forced labor and the lack of IP protection to the coddling of state-owned companies.
What is the absolute and comparative advantage of Canada?
Canadians have a lower opportunity cost of producing cell phones and, thus, have a comparative advantage in producing cell phones. Absolute advantage The ability to produce more of a good or service than competitors when using the same amount of resources.
For which good does Canada have a comparative advantage quizlet?
eg. suppose Canada and south Korea produce cell phones and televisions. Korea also has a comparative advantage in producing televisions, as they produce them at a lower opportunity cost. Canada has a comparative advantage in producing cellphones.
What is Canada’s biggest economic advantage?
Why Is Canada Wealthy? Canada is a wealthy nation because it has a strong and diversified economy. A large part of its economy depends on the mining of natural resources, such as gold, zinc, copper, and nickel, which are used extensively around the world.
What are some competitive advantages of Canada?
On this page
- Highlights.
- Canada is open for business and welcomes foreign investment.
- Fiscal soundness and resilient economy.
- Low cost, low tax environment.
- Highly educated and competitive workforce.
- Gateway to North America and the world.
- Environment conducive to leading-edge innovation.
What makes Canada unique from other countries?
Canada is famous for the gorgeous scenery and uninhabited land. The views of the untouched and natural environment are breathtaking and composed of beautiful lakes and rivers. There are three oceans, mountains, plains, and some of the most attractive cities in the world, like Toronto.
Why Canada is preferred over other countries?
A Safe and Peaceful Country
According to the Global Peace Index 2021, Canada is ranked as one of the safest and the 10th most peaceful countries across the world. Universities in Canada have a superior body to safeguard the safety of students, especially coming from different countries.
Can two countries both have comparative advantage?
It is not possible for an individual or country to have a comparative advantage in all goods. There will be some other individual or country that can produce some things at lower opportunity costs.
Which countries have absolute advantage?
A clear example of a nation with an absolute advantage is Saudi Arabia, a country with abundant oil supplies that provide it with an absolute advantage over other nations. Other examples include Colombia and its climate—ideally suited to growing coffee—and Zambia, possessing some of the world’s richest copper mines.
Does China have a comparative advantage or absolute advantage?
Answer and Explanation: China has the largest population of any country in the world. Because of this, they have a larger labor force than any country on the planet. This means that China has an absolute advantage in producing any product that requires a high number of workers to produce.
What is the United States comparative advantage?
The United States’ comparative advantage is in specialized, capital-intensive labor. American workers produce sophisticated goods or investment opportunities at lower opportunity costs. Specializing and trading along these lines benefit each.
How do you find the comparative advantage?
Comparative advantage is when a country can produce a good with the least opportunity cost.
Steps to Calculating Comparative Advantage
- Step 1: Calculate the Opportunity Cost of Each Good from Each Country.
- Step 2: Plot the opportunity costs on the Two Way Table.
- Step 3: Identify the Comparative Advantage.
How do countries benefit from comparative advantage?
Benefits of comparative advantage
Lower opportunity costs and higher profit margins: Nations or companies with a comparative advantage can focus their labor, capital and resources on production that requires a lower opportunity cost and therefore achieve higher profit margins.
What is France’s comparative advantage?
France has many advantages which are favourable to business growth
- HIGH PRODUCTIVITY.
- SKILLED WORKFORCE.
- SUPPORT FOR VOCATIONAL TRAINING.
- SUPPORT FOR INNOVATION.
- EXCEPTIONAL QUALITY OF LIFE.
- PRESTIGIOUS INTERNATIONAL CAPITAL.
- SECTORS OF EXCELLENCE.
- HIGH-PERFORMANCE AIRLINE CONNECTIONS.
What is Japan’s comparative advantage?
Japan’s long tradition of manufacturing excellence and quality craftsmanship has provided a significant and durable competitive advantage in both industrial and consumer goods.