Economic business class
Resources
Read/review the following resources for this activity:
- Textbook: Chapter 3
- Videos: Chapter 3 (in Weekly Resources)
- Minimum of 1 library resource for initial post
Introduction
In this discussion, you will apply what you have learned in Chapter 3 to real–world situations in order to see how the concepts can be applied to a very broad range of situations.
Keep in mind that throughout this course, discussions are intended to bring real–world situations to the course material that we are covering each week. Part of your grade will depend on the connections youmake between the article or scenario in each discussion, the material from the chapters we covered in the week, and, when applicable, your own experience.
Initial Post Instructions
Choose a country or region and a particular product (or type of product) that the chosen area produces and explain why that area might have a comparative advantage in that good. Remember the difference between comparative and absolute advantage when writing your reply! Why might the comparative advantage exist? Are there particular resources available to the area, particular past decisions that the area has made, or other characteristics that allow the area to produce the good cheaper (in terms of the other goods foregone when producing the good)? What gives rise to this comparative advantage? Are there other goods that the country would have a similar Comparative Advantage? Why? Is there a good in which your chosen area would not have a comparative advantage? Why?
Answer preview
According to Kimberley (2018), comparative advantage is when a given country produces a good or service at a lower opportunity when compared to the other nations. A lower opportunity cost means that a country can forego less other goods to produce it. A state with a comparative advantage makes a trade-off worth it. Absolute advantage is anything a country does more efficiently than other countries. Countries with vast, fertile, excellent climate and freshwaters have an absolute advantage in agriculture. …
(400 words)