/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q 28. Can a nation鈥檚 comparative adv... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 20: Q 28. (page 494)

Can a nation鈥檚 comparative advantage change over

time? What factors would make it change?

Short Answer

Expert verified

Of course yes, a nation's comparative advantage changes over time.

Step by step solution

01

Step 1. Definition

Comparative advantage is defined as the capability of an economy to produce a good or service at a reduced opportunity cost as compared to its trading partners.

02

Step 2. Explanation

A nations comparative advantage may change overtime because a product in which a nation have comparative advantage over others depends upon various reasons like domestic firm's production, specialization, capability, etc. so if there is a negative change in these factors there is a negative impact on the comparative advantage of that country.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

How does comparative advantage lead to gains from trade?

In France, it takes one worker to produce one sweater, and one worker to produce one bottle of wine. In Tunisia, it takes two workers to produce one sweater, and three workers to produce one bottle of wine. Who has the absolute advantage in the production of sweaters? Who has the absolute advantage in the production of wine? How can you tell?

True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.

Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage? Explain.

From earlier chapters you will recall that technological change shifts the average cost curves. Draw a graph showing how technological change could influence intra-industry trade.
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.