Question
Do you agree or disagree, why or why not? The Theory of Absolute Advantage is when a producer can produce a good or service in
Do you agree or disagree, why or why not?
The Theory of Absolute Advantage is when a producer can produce a good or service in a greater quantity for the same cost, or the same quantity at a lower cost, than other producers.The Theory of Comparative Advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. Finally the Hecksher-Ohlin Theory is an economic theory that proposes that countries export what they can most efficiently and plentifully produce.All of these theories play the role of have cost to produce the product and that's how they all would determine what a nation should produce for trade.I disagree there must be a regulation on trade because without the regulation there would be no control over trade.Countries would trade with the highest bidder and the smaller countries would get no releif or aid when needed.
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