What is France’s comparative advantage?
This means that France can produce wine at a lower opportunity cost than the United States. In other words, France has a comparative advantage in wine production. This also means that if the United States has a comparative advantage in one of the two goods, France must have the comparative advantage in the other good.
Which country has absolute advantage in wine?
The United States has the absolute advantage in the production of both cars and wine. It can produce more of both goods.
Which country has the absolute advantage in producing food?
China can produce such goods more efficiently, which gives it an absolute advantage relative to many countries. Imagine that Economy A can produce 5 widgets per hour with 3 workers.
What is absolute advantage give an example?
A clear example of a nation with an absolute advantage is Saudi Arabia, The ease with which it can reach its oil supplies, which greatly reduces the cost of extraction, is its absolute advantage over other nations.
Which country has an absolute advantage in cheese in cars?
Answers: a. France has the absolute advantage in cheese and Germany in cars. This follows because France’s productivity is higher in cheese and Germany’s is higher in cars.
What does the absolute advantage theory explain?
In economics, the principle of absolute advantage is the ability of a party (an individual, or firm, or country) to produce a good or service more efficiently than its competitors.
Does France have an absolute advantage?
France has an absolute advantage (meaning it can produce more of both), however it shouldn’t produce both. For France the opportunity cost of producing 1 barrel of beer is 4/3 bottles of wine. For England the opportunity cost of producing 1 barrel of beer is only 1.2 bottles of wine.
Does Italy have an absolute advantage?
Absolute advantage looks at the efficiency of producing a single product. … As an example, if Japan and Italy can both produce automobiles, but Italy can produce sports cars of a higher quality and at a faster rate with greater profit, then Italy is said to have an absolute advantage in that particular industry.
Which country has the absolute advantage in bananas?
Puerto Rico has the absolute advantage in bananas, while Jamaica has the absolute advantage in sugar cane.
Does France Italy or neither nation have a comparative advantage in producing grapes explain?
France has absolute advantage in: Neither grapes nor textiles.
Which country has an absolute advantage in producing maple syrup?
Canada has an absolute advantage in the production of maple syrup.
Which country has the absolute advantage in producing dates?
Which country has the ABSOLUTE advantage in producing DATES? Italy and Libya produce grain and dates. Which country has the ABSOLUTE advantage in producing GRAIN? Italy and Libya produce grain and dates.