Opportunity Costs‚ Absolute Advantage and Comparative Advantage Abstract This work defines and illustrates examples of opportunity cost. It also defines and compares comparative and absolute advantage. Then‚ the work extends the narrative to compare these terms in today’s society. Opportunity Costs‚ Absolute Advantage and Comparative Advantage Example 1: | Potatoes | Chickens | Michelle | 200 | 50 | James | 80 | 40 | * What is Michelle’s opportunity cost of producing potatoes
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the Logitech case and answer the following questions. 1: In a world without trade‚ what would happen to the costs that American consumers would have to pay for Logitech’s products? 2: Explain how trade lowers the costs of making computer peripherals such as mice and keyboards. 3: Use the theory of comparative advantage to explain the way in which Logitech has configured its global operations. Why does the company manufacture in China and Taiwan‚ undertake basic R&D in California and Switzerland
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1. INTRODUCTION Indian domestic leather goods market is estimated to be worth Rs 16‚300 crore and is expected to grow at a CAGR of 20%. Domestic footwear market is estimated to be over Rs 15‚000 crore in value terms and has grown at the rate of 8.8% over the last couple of years. Men’s footwear accounts for almost half of the total market‚ with women’s shoes constituting 40 percent and kidsʹ footwear making up for the remainder. The domestic market is substantially price driven‚ with branded footwear
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Is India exploiting its comparative advantage? – Essay The theory of comparative advantage states that if two countries each specialise in the product with the lowest opportunity cost‚ and then trade‚ real incomes will increase for both countries. India is one of the world’s largest countries by both land mass and population. It is located in South Asia‚ bordering the Arabian Sea. India is considered one of the major forces in the global economic market although it is still a developing economy
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Indian Leather Industry The leather industry occupies a place of prominence in the Indian economy in view of its massive potential for employment‚ growth and exports. There has been an increasing emphasis on its planned development‚ aimed at optimum utilisation of available raw materials for maximising the returns‚ particularly from exports. The exports of leather and leather products gained momentum during the past two decades. There has been a phenomenal growth in exports from Rs.320 million
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Labour can be reallocated costlessly between industries within a country but cannot move between countries. Thus each country would export the good in which they have a comparative advantage. Trade flows would increase until the price of each good is equal across countries. In the end‚ the price of each country ’s export good‚ will rise and the price of its import good will fall. The higher price received for each country ’s comparative advantage good would lead each country to specialize in that
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How can the word ‘explain’ exactly means? According to Cambridge dictionary the word ‘explain’ is used to mean ‘make something clear or easy to understand by describing or giving information about it. It is possible to have various interpretations of the same world ‚in everyday language the term "explain" can mean many things‚ and is generally applied to prove something or make it more comprehensible‚ but in the more complex level it could mean many things depending on the subject it denotes. However
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Effects on Language The Indians adopted the English language as their main form of communication and national language. The missionaries who went to India during the early colonial days introduced this language. In addition‚ most of the educated Indians preferred to communicate in English. This was to portray their civilization level and also help them catch up with the English ways‚ which they all pursued passionately. For example‚ we are told that some of them like Lola’s daughter‚ Pixie‚ have
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To What Extent Should Government Control National Healthcare? The general health of the population today must be considered one of the greatest marvels of human civilization and ingenuity. Pregnant women no longer have to dread the 10 percent risk of death at childbirth that used to be usual; a newborn in Canada today can expect to live 80 years; death related to childhood infections is now rare; the long-term outcome of childhood leukemia has changed from 85 percent mortality to 85 percent survival;
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Many years ago‚ India’s pharmaceutical industry was suffering from number of international trade limits due to their violation of intellectual property rights. The Indian companies used to copy patents of drugs made by Western countries and Japan with no responsibility to property rights. This would discourage international investors from investing into India’s drug industry. India was only good for making generic brand drugs because the patents for those drugs were already expired. However‚ the
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