International trade exists for several reasons. First, differences in demand underlie trade. Certain products we want are not produced in the
Comparative Advantage
Comparative Advantage: Meaning, Assumptions, Examples, Criticisms
What's it: Comparative advantage is a favorable position arising from producing goods and services at a lower opportunity cost. This concept is
Absolute Advantage: Examples, Assumptions, Criticism
What's it: Absolute advantage refers to the ability to produce goods or services more efficiently than others. As a result, those with this