In economics, the law of comparative value refers to the ability of a person or a landed estate to construct a particular good or renovation at a lower marginal cost and opportunity cost than another person or agricultural. It is the ability to produce a product most efficiently given every(prenominal) the other products that could be produced. It can be contrasted with absolute gain which refers to the ability of a person or a country to produce a particular good at a lower absolute cost than another. Comparative advantage explains how trade can create value for both parties even when hotshot can produce all goods with fewer resources than the other. The net benefits of much(prenominal) an outcome are called gains from trade.
productiveness is closely associated with growth in real wages and living standards. A careful shade at productivity trends indicates that there are sharp movements from category to year as well as long swings. Productivity of developing countries grew briskly from World War II until the fresh 1960s. Then, beginning around 1973, there were several years of unequal performance, and even decline.
Surveys of this period indicate that the poor productivity exhibit stemmed from the sharp increases in oil prices, increasing tightness of regulations, and impacts o price and wage controls and pervasive controls in the heartiness industries, as well as a slowdown in research and development spending.
Various developing countries like China, India, Hong Kong, capital of Singapore have utilized the factor of their relevant comparative advantage and improved their living standards by increasing their productivity take during the last few decades. Free trade has also compete an important role in these countries’ economic development. They have receive from...If you want to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment