What is the international trade?

What does the domestic price that prevails without international trade tell us about a nation's comperative ad?

  • What does the domestic price that prevails without international trade tell us about a nation's comperative advantage?

  • Answer:

    Comparative advantage means a comparison of domestic price between countries to find the lowest opportunity cost.After trade,the domestic price will be adjusted by exchange rate.

Sanane at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

Your wording of the question seems to be wrong. However, if you know what you will pay for a domestically priced good and the same good produced overseas, you will see where the comparative advantage lies. If it costs you less to buy the domestic good. Your country has the comparative advantage in producing that good, all other things remaining equal. If it costs you more then the overseas country has the comparative advantage, all other things remaining equal. Now, if you don't have international trade. You won't know whether you have a comparative advantage or not with a domestic good because there's nothing to compare it to.

Paradox

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.