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A. i. Define comparative advantage. Comparative advantage is when a country is unable to produce a product more efficiently than than other countries but it
A. i. Define comparative advantage. Comparative advantage is when a country is unable to produce a product more efficiently than than other countries but it can produce the product better than other products it produces. ii. Explain to the clockmakers how and why Hungary will benefit overall from free trade according to opportunity costs and the theory of comparative advantage. ( 6 marks) B. While your explanation is helpful in a broad sense, the Prime Minister still needs to know how the government can help the clockmakers, specifically. Explain the possible barriers to trade that can be implemented and recommend, in detail, two non-tariff policies his government can implement to help the clockmakers. (13 marks) (Total 20 marks)
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