-
Absolute Advantage vs. Comparative Advantage
Now that we've learned about specialization, we are ready to learn about absolute advantage and comparative advantage. This is something that can help an individual, company, or country determine what is in their best interests to produce, by examining opportunity costs. This also leads to the concept of interdependence, which ties in with exports and imports, as we've already discussed. Take a look!
Script by Matt Beat: https://www.youtube.com/user/iammrbeat
Animation by Ignacio Triana: https://www.youtube.com/c/Unraveled
Watch the whole Economics playlist: http://bit.ly/ProfDaveEcon
Mathematics Tutorials: http://bit.ly/ProfDaveMath
American History Tutorials: http://bit.ly/ProfDaveAmericanHistory
History of Drugs Videos: http://bit.ly/ProfDaveHistoryDrugs
General Chemistry Tutorials: ...
published: 30 Jun 2021
-
Porter Diamond Theory of National Advantage (with real world examples) | International Business
Porter’s Diamond Model, also known as the Theory of National Competitive Advantage of Industries, is a diamond-shaped framework that focuses on explaining why certain industries within a particular nation are competitive internationally and why are certain companies based in certain nations capable of consistent innovation?
published: 05 May 2021
-
Comparative advantage specialization and gains from trade | Microeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/scarcity-and-growth/v/comparative-advantage-specialization-and-gains-from-trade
How two parties can get better outcomes by specializing in their comparative advantage and trading
Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/gains-from-trade-tutorial/v/comparative-advantage-and-absolute-advantage?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/production-possibilities/v/economic-growth-through-i...
published: 30 Dec 2011
-
Absolute Advantage and Comparative Advantage (with examples) | International Business
The United States is one of the wealthiest nations in the world, yet we continue to trade with other countries. Have you ever wondered why this is the case? If the U.S. is so powerful, then how does it benefit from international trade? To answer this question, we need to understand two important terms in the international business field: the absolute advantage and the comparative advantage.
published: 26 May 2021
-
Michael E Porter's Diamond Model explains The Competitive Advantage of Nations
Michael E Porters “The Diamond Model” was published in 1990 in his book ”The Competitive Advantage of Nations”. It’s a model that can help us understand why a nation becomes the home base for successful international competitors in a particular industry and other nations don’t.
He argues, that the old theories – made by Adam Smith and David Ricardo – are not sufficient to explain competitiveness between technology advantage nations of today.
Section
0:00 Introduction of the author and the purpose of the model
0:39 The models four broad determinants plus two influencing determinants
1:36 1. Determinant - Factor conditions with example
3:43 2. Determinant - Demand conditions with example
5:42 3. Determinant - Related and supporting industries with example
6:56 4. Determinant - Firm strateg...
published: 09 Aug 2016
-
PORTER'S DIAMOND MODEL OF COMPETITIVE ADVANTAGE
Porter's Diamond Model
Hello everyone,
In this video I have explained about the four factors which helps industries build competitive advantage internationally.
These are:
FACTOR CONDITIONS
DEMAND CONDITIONS
RELATED INDUSTRIES
RIVALRY
This model is explained with the help of real life examples to make the concepts very simple and easy to understand.
I hope you will like it.
See you next time.
link on the link to know about other international theories:
https://youtu.be/XTyUpEKObzs
published: 27 Jun 2020
-
How Apple Creates it Competitive Advantage
Apple, one of the biggest tech giants, has created a strong competitive advantage in the market. This as a result has enabled the company to go toe to toe with every other market player, while still maintaining its leadership position. In this video, we have discussed about how Apple has used Differentiation to create a strong competitive advantage and how it is reflected in its business model.
published: 20 Aug 2022
-
The Principle of Comparative Advantage - 60 Second Adventures in Economics (4/6)
David Ricardo's famous economic model, predicts that if there are just two countries and two products both can be better off if they specialise and trade in the thing they're relatively best at.
(Part 4 of 6)
Playlist link - https://www.youtube.com/playlist?list=PLhQpDGfX5e7DDGEQvLonjDQsbclAF2N-t
Transcript link - http://podcast.open.ac.uk/feeds/3998_youtubeuploadsfriday/20181031T142703_The_Principle_of_Comparative_Advantage_-_Transcript.pdf
Free learning from The Open University - Competitive advantage
http://www.open.edu/openlearn/money-management/management/business-studies/competitive-advantage
Study a free course on Managing my money at the Open University http://www.open.edu/openlearn/money-management/managing-my-money/content-section-overview?active-tab=description-tab
Study R3...
published: 05 Sep 2012
-
Second Mover Advantage #shorts
Exploring Second Mover Advantage: Discover the strategic benefits of entering the market as a second mover in this insightful video. Learn how companies leverage the groundwork laid by pioneers to refine their products, optimize strategies, and avoid initial market entry costs.
#SecondMoverAdvantage #BusinessStrategy #MarketEntry #Innovation
published: 03 Mar 2024
-
Comparative Advantage Practice
If you want to skip the lesson and just practice go to 10:48. I spend the first have of the video explaining how to identify which country has an absolute advantage, calculate opportunity cost, identify which country has a comparative advantage, and find a terms of trade that both countries would voluntarily agree to. The second half of the video is an additional practice questions where I quickly go over the answers. I also added the answers below if you are in a hurry. Thank you for watching, please subscribe.
Additional Multiple Choice Questions
https://www.youtube.com/watch?v=WLfOZz-_JMY&t=6s
Unit 1 Summary Video (includes quick and dirty trick)
https://www.youtube.com/watch?v=JBHbwtzHfDg
ANSWERS
Situation #1 (5:30)
The US can produce 20 planes or 2 cruise ships
France can produce ...
published: 29 Aug 2017
7:28
Absolute Advantage vs. Comparative Advantage
Now that we've learned about specialization, we are ready to learn about absolute advantage and comparative advantage. This is something that can help an indivi...
Now that we've learned about specialization, we are ready to learn about absolute advantage and comparative advantage. This is something that can help an individual, company, or country determine what is in their best interests to produce, by examining opportunity costs. This also leads to the concept of interdependence, which ties in with exports and imports, as we've already discussed. Take a look!
Script by Matt Beat: https://www.youtube.com/user/iammrbeat
Animation by Ignacio Triana: https://www.youtube.com/c/Unraveled
Watch the whole Economics playlist: http://bit.ly/ProfDaveEcon
Mathematics Tutorials: http://bit.ly/ProfDaveMath
American History Tutorials: http://bit.ly/ProfDaveAmericanHistory
History of Drugs Videos: http://bit.ly/ProfDaveHistoryDrugs
General Chemistry Tutorials: http://bit.ly/ProfDaveGenChem
Classical Physics Tutorials: http://bit.ly/ProfDavePhysics1
EMAIL► ProfessorDaveExplains@gmail.com
PATREON► http://patreon.com/ProfessorDaveExplains
Check out "Is This Wi-Fi Organic?", my book on disarming pseudoscience!
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Bookshop: https://bit.ly/39cKADM
Barnes and Noble: https://bit.ly/3pUjmrn
Book Depository: http://bit.ly/3aOVDlT
https://wn.com/Absolute_Advantage_Vs._Comparative_Advantage
Now that we've learned about specialization, we are ready to learn about absolute advantage and comparative advantage. This is something that can help an individual, company, or country determine what is in their best interests to produce, by examining opportunity costs. This also leads to the concept of interdependence, which ties in with exports and imports, as we've already discussed. Take a look!
Script by Matt Beat: https://www.youtube.com/user/iammrbeat
Animation by Ignacio Triana: https://www.youtube.com/c/Unraveled
Watch the whole Economics playlist: http://bit.ly/ProfDaveEcon
Mathematics Tutorials: http://bit.ly/ProfDaveMath
American History Tutorials: http://bit.ly/ProfDaveAmericanHistory
History of Drugs Videos: http://bit.ly/ProfDaveHistoryDrugs
General Chemistry Tutorials: http://bit.ly/ProfDaveGenChem
Classical Physics Tutorials: http://bit.ly/ProfDavePhysics1
EMAIL► ProfessorDaveExplains@gmail.com
PATREON► http://patreon.com/ProfessorDaveExplains
Check out "Is This Wi-Fi Organic?", my book on disarming pseudoscience!
Amazon: https://amzn.to/2HtNpVH
Bookshop: https://bit.ly/39cKADM
Barnes and Noble: https://bit.ly/3pUjmrn
Book Depository: http://bit.ly/3aOVDlT
- published: 30 Jun 2021
- views: 230569
9:39
Porter Diamond Theory of National Advantage (with real world examples) | International Business
Porter’s Diamond Model, also known as the Theory of National Competitive Advantage of Industries, is a diamond-shaped framework that focuses on explaining why c...
Porter’s Diamond Model, also known as the Theory of National Competitive Advantage of Industries, is a diamond-shaped framework that focuses on explaining why certain industries within a particular nation are competitive internationally and why are certain companies based in certain nations capable of consistent innovation?
https://wn.com/Porter_Diamond_Theory_Of_National_Advantage_(With_Real_World_Examples)_|_International_Business
Porter’s Diamond Model, also known as the Theory of National Competitive Advantage of Industries, is a diamond-shaped framework that focuses on explaining why certain industries within a particular nation are competitive internationally and why are certain companies based in certain nations capable of consistent innovation?
- published: 05 May 2021
- views: 59551
8:56
Comparative advantage specialization and gains from trade | Microeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroecono...
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/scarcity-and-growth/v/comparative-advantage-specialization-and-gains-from-trade
How two parties can get better outcomes by specializing in their comparative advantage and trading
Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/gains-from-trade-tutorial/v/comparative-advantage-and-absolute-advantage?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/production-possibilities/v/economic-growth-through-investment?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy's Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Comparative_Advantage_Specialization_And_Gains_From_Trade_|_Microeconomics_|_Khan_Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/scarcity-and-growth/v/comparative-advantage-specialization-and-gains-from-trade
How two parties can get better outcomes by specializing in their comparative advantage and trading
Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/gains-from-trade-tutorial/v/comparative-advantage-and-absolute-advantage?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/production-possibilities/v/economic-growth-through-investment?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy's Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
- published: 30 Dec 2011
- views: 943648
9:00
Absolute Advantage and Comparative Advantage (with examples) | International Business
The United States is one of the wealthiest nations in the world, yet we continue to trade with other countries. Have you ever wondered why this is the case? If ...
The United States is one of the wealthiest nations in the world, yet we continue to trade with other countries. Have you ever wondered why this is the case? If the U.S. is so powerful, then how does it benefit from international trade? To answer this question, we need to understand two important terms in the international business field: the absolute advantage and the comparative advantage.
https://wn.com/Absolute_Advantage_And_Comparative_Advantage_(With_Examples)_|_International_Business
The United States is one of the wealthiest nations in the world, yet we continue to trade with other countries. Have you ever wondered why this is the case? If the U.S. is so powerful, then how does it benefit from international trade? To answer this question, we need to understand two important terms in the international business field: the absolute advantage and the comparative advantage.
- published: 26 May 2021
- views: 35914
21:04
Michael E Porter's Diamond Model explains The Competitive Advantage of Nations
Michael E Porters “The Diamond Model” was published in 1990 in his book ”The Competitive Advantage of Nations”. It’s a model that can help us understand why a n...
Michael E Porters “The Diamond Model” was published in 1990 in his book ”The Competitive Advantage of Nations”. It’s a model that can help us understand why a nation becomes the home base for successful international competitors in a particular industry and other nations don’t.
He argues, that the old theories – made by Adam Smith and David Ricardo – are not sufficient to explain competitiveness between technology advantage nations of today.
Section
0:00 Introduction of the author and the purpose of the model
0:39 The models four broad determinants plus two influencing determinants
1:36 1. Determinant - Factor conditions with example
3:43 2. Determinant - Demand conditions with example
5:42 3. Determinant - Related and supporting industries with example
6:56 4. Determinant - Firm strategy, structure, and rivalry with example
8:26 Determinant - Governmental policy - influence on the four broad determinants
11:37 Determinant - Chance - outside control
13:03 An example - The German automobil industry
13:26 The German automobil industry - Factor conditions
15:04 The German automobil industry - Demand conditions
16:06 The German automobil industry - Related and supporting industries
17:20 The German automobil industry - Firm strategy, structure, and rivalry
18:38 The German automobil industry - Chance and Government
19:30 Criticism of the model
Download the model (PowerPoint) from our website:
https://flixabout.com/porters-diamond-model
You might benefit from:
Michael Porters five forces
https://www.youtube.com/watch?v=YoXlJqX5Qf0
Michael Porters value chain
https://www.youtube.com/watch?v=a9LWp9y2fMw
Michael Porters generic strategies
https://www.youtube.com/watch?v=HiBRviA3lnI&t=609s
Our Youtube channel
https://www.youtube.com/c/flixaboutcom
Our homepage
www.flixabout.com
https://wn.com/Michael_E_Porter's_Diamond_Model_Explains_The_Competitive_Advantage_Of_Nations
Michael E Porters “The Diamond Model” was published in 1990 in his book ”The Competitive Advantage of Nations”. It’s a model that can help us understand why a nation becomes the home base for successful international competitors in a particular industry and other nations don’t.
He argues, that the old theories – made by Adam Smith and David Ricardo – are not sufficient to explain competitiveness between technology advantage nations of today.
Section
0:00 Introduction of the author and the purpose of the model
0:39 The models four broad determinants plus two influencing determinants
1:36 1. Determinant - Factor conditions with example
3:43 2. Determinant - Demand conditions with example
5:42 3. Determinant - Related and supporting industries with example
6:56 4. Determinant - Firm strategy, structure, and rivalry with example
8:26 Determinant - Governmental policy - influence on the four broad determinants
11:37 Determinant - Chance - outside control
13:03 An example - The German automobil industry
13:26 The German automobil industry - Factor conditions
15:04 The German automobil industry - Demand conditions
16:06 The German automobil industry - Related and supporting industries
17:20 The German automobil industry - Firm strategy, structure, and rivalry
18:38 The German automobil industry - Chance and Government
19:30 Criticism of the model
Download the model (PowerPoint) from our website:
https://flixabout.com/porters-diamond-model
You might benefit from:
Michael Porters five forces
https://www.youtube.com/watch?v=YoXlJqX5Qf0
Michael Porters value chain
https://www.youtube.com/watch?v=a9LWp9y2fMw
Michael Porters generic strategies
https://www.youtube.com/watch?v=HiBRviA3lnI&t=609s
Our Youtube channel
https://www.youtube.com/c/flixaboutcom
Our homepage
www.flixabout.com
- published: 09 Aug 2016
- views: 145415
13:49
PORTER'S DIAMOND MODEL OF COMPETITIVE ADVANTAGE
Porter's Diamond Model
Hello everyone,
In this video I have explained about the four factors which helps industries build competitive advantage internationall...
Porter's Diamond Model
Hello everyone,
In this video I have explained about the four factors which helps industries build competitive advantage internationally.
These are:
FACTOR CONDITIONS
DEMAND CONDITIONS
RELATED INDUSTRIES
RIVALRY
This model is explained with the help of real life examples to make the concepts very simple and easy to understand.
I hope you will like it.
See you next time.
link on the link to know about other international theories:
https://youtu.be/XTyUpEKObzs
https://wn.com/Porter'S_Diamond_Model_Of_Competitive_Advantage
Porter's Diamond Model
Hello everyone,
In this video I have explained about the four factors which helps industries build competitive advantage internationally.
These are:
FACTOR CONDITIONS
DEMAND CONDITIONS
RELATED INDUSTRIES
RIVALRY
This model is explained with the help of real life examples to make the concepts very simple and easy to understand.
I hope you will like it.
See you next time.
link on the link to know about other international theories:
https://youtu.be/XTyUpEKObzs
- published: 27 Jun 2020
- views: 46714
5:51
How Apple Creates it Competitive Advantage
Apple, one of the biggest tech giants, has created a strong competitive advantage in the market. This as a result has enabled the company to go toe to toe with ...
Apple, one of the biggest tech giants, has created a strong competitive advantage in the market. This as a result has enabled the company to go toe to toe with every other market player, while still maintaining its leadership position. In this video, we have discussed about how Apple has used Differentiation to create a strong competitive advantage and how it is reflected in its business model.
https://wn.com/How_Apple_Creates_It_Competitive_Advantage
Apple, one of the biggest tech giants, has created a strong competitive advantage in the market. This as a result has enabled the company to go toe to toe with every other market player, while still maintaining its leadership position. In this video, we have discussed about how Apple has used Differentiation to create a strong competitive advantage and how it is reflected in its business model.
- published: 20 Aug 2022
- views: 6860
1:23
The Principle of Comparative Advantage - 60 Second Adventures in Economics (4/6)
David Ricardo's famous economic model, predicts that if there are just two countries and two products both can be better off if they specialise and trade in the...
David Ricardo's famous economic model, predicts that if there are just two countries and two products both can be better off if they specialise and trade in the thing they're relatively best at.
(Part 4 of 6)
Playlist link - https://www.youtube.com/playlist?list=PLhQpDGfX5e7DDGEQvLonjDQsbclAF2N-t
Transcript link - http://podcast.open.ac.uk/feeds/3998_youtubeuploadsfriday/20181031T142703_The_Principle_of_Comparative_Advantage_-_Transcript.pdf
Free learning from The Open University - Competitive advantage
http://www.open.edu/openlearn/money-management/management/business-studies/competitive-advantage
Study a free course on Managing my money at the Open University http://www.open.edu/openlearn/money-management/managing-my-money/content-section-overview?active-tab=description-tab
Study R30 BA (Honours) Economics
http://www.open.ac.uk/courses/qualifications/r30
The Open University is the world’s leading provider of flexible, high-quality online degrees and distance learning, serving students across the globe with highly respected degree qualifications, and the triple-accredited MBA. The OU teaches through its own unique method of distance learning, called ‘supported open learning’ and you do not need any formal qualifications to study with us, just commitment and a desire to find out what you are capable of.
Free learning from The Open University
http://www.open.edu/openlearn/
For more like this subscribe to the Open University channel
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#OpenUniversity #Economy
https://wn.com/The_Principle_Of_Comparative_Advantage_60_Second_Adventures_In_Economics_(4_6)
David Ricardo's famous economic model, predicts that if there are just two countries and two products both can be better off if they specialise and trade in the thing they're relatively best at.
(Part 4 of 6)
Playlist link - https://www.youtube.com/playlist?list=PLhQpDGfX5e7DDGEQvLonjDQsbclAF2N-t
Transcript link - http://podcast.open.ac.uk/feeds/3998_youtubeuploadsfriday/20181031T142703_The_Principle_of_Comparative_Advantage_-_Transcript.pdf
Free learning from The Open University - Competitive advantage
http://www.open.edu/openlearn/money-management/management/business-studies/competitive-advantage
Study a free course on Managing my money at the Open University http://www.open.edu/openlearn/money-management/managing-my-money/content-section-overview?active-tab=description-tab
Study R30 BA (Honours) Economics
http://www.open.ac.uk/courses/qualifications/r30
The Open University is the world’s leading provider of flexible, high-quality online degrees and distance learning, serving students across the globe with highly respected degree qualifications, and the triple-accredited MBA. The OU teaches through its own unique method of distance learning, called ‘supported open learning’ and you do not need any formal qualifications to study with us, just commitment and a desire to find out what you are capable of.
Free learning from The Open University
http://www.open.edu/openlearn/
For more like this subscribe to the Open University channel
https://www.youtube.com/channel/UCXsH4hSV_kEdAOsupMMm4Qw
Like us on Facebook: https://www.facebook.com/ouopenlearn/
Follow us on Twitter: https://twitter.com/OUFreeLearning
#OpenUniversity #Economy
- published: 05 Sep 2012
- views: 190554
0:56
Second Mover Advantage #shorts
Exploring Second Mover Advantage: Discover the strategic benefits of entering the market as a second mover in this insightful video. Learn how companies leverag...
Exploring Second Mover Advantage: Discover the strategic benefits of entering the market as a second mover in this insightful video. Learn how companies leverage the groundwork laid by pioneers to refine their products, optimize strategies, and avoid initial market entry costs.
#SecondMoverAdvantage #BusinessStrategy #MarketEntry #Innovation
https://wn.com/Second_Mover_Advantage_Shorts
Exploring Second Mover Advantage: Discover the strategic benefits of entering the market as a second mover in this insightful video. Learn how companies leverage the groundwork laid by pioneers to refine their products, optimize strategies, and avoid initial market entry costs.
#SecondMoverAdvantage #BusinessStrategy #MarketEntry #Innovation
- published: 03 Mar 2024
- views: 45
19:01
Comparative Advantage Practice
If you want to skip the lesson and just practice go to 10:48. I spend the first have of the video explaining how to identify which country has an absolute advan...
If you want to skip the lesson and just practice go to 10:48. I spend the first have of the video explaining how to identify which country has an absolute advantage, calculate opportunity cost, identify which country has a comparative advantage, and find a terms of trade that both countries would voluntarily agree to. The second half of the video is an additional practice questions where I quickly go over the answers. I also added the answers below if you are in a hurry. Thank you for watching, please subscribe.
Additional Multiple Choice Questions
https://www.youtube.com/watch?v=WLfOZz-_JMY&t=6s
Unit 1 Summary Video (includes quick and dirty trick)
https://www.youtube.com/watch?v=JBHbwtzHfDg
ANSWERS
Situation #1 (5:30)
The US can produce 20 planes or 2 cruise ships
France can produce 12 planes or 2 cruise ships
-The US has an ABSOLUTE ADVANTAGE in planes
-Neither has an ABSOLUTE ADVANTAGE in cruise ships
-For the US, 1 plane costs 1/10 cruise ship and 1 ship costs 10 planes
-For France, 1 plane costs 1/6 cruise ship and 1 ship costs 6 planes
-US has COMPARATIVE ADVANTAGE in planes
-France has COMPARATIVE ADVANTAGE in cruise ships
-Terms of trade: 1 Cruise Ship for 7 Planes
Situation #2 (11:12)
Korea can produce 3 cars or 9 motorcycles
Germany can produce 4 cars or 8 motorcycles
-Germany has an ABSOLUTE ADVANTAGE in cars
-Korea has an ABSOLUTE ADVANTAGE in motorcycles
-For Korea, 1 car costs 3 motorcycles and 1 motorcycle costs 1/3 car
-For Germany, 1 car costs 2 motorcycles and 1 motorcycle costs 1/2 car
-Germany has COMPARATIVE ADVANTAGE in cars
-Korea has COMPARATIVE ADVANTAGE in motorcycles
-Terms of trade: 1 Car for 2.5 Motorcycles
Situation #3 (13:22)
Japan can produce 4 laptops or 12 phones
Brazil can produce 1 laptops or 5 phones
-Japan has an ABSOLUTE ADVANTAGE in laptops
-Japan has an ABSOLUTE ADVANTAGE in phones
-For Japan, 1 laptop costs 3 phones and 1 phone costs 1/3 laptop
-For Brazil, 1 laptop costs 5 phones and 1 phone costs 1/5 laptop
-Japan has COMPARATIVE ADVANTAGE in laptops
-Brazil has COMPARATIVE ADVANTAGE in phones
-Terms of trade: 1 Laptop for 4 Phones
Situation #4 (16:08)
Cuba takes 4hrs to make a TV and 12hrs to make salsa
Mexico takes 1hr to make a TV and 5hrs to make salsa
-Mexico has an ABSOLUTE ADVANTAGE in TVs
-Mexico has an ABSOLUTE ADVANTAGE in Salsa
-For Cuba, 1 TV costs 1/3 salsa and 1 salsa costs 3 TVs
-For Mexico, 1 TV costs 1/5 salsa and 1 salsa costs 5 TVs
-Mexico has COMPARATIVE ADVANTAGE in TVs
-Cuba has COMPARATIVE ADVANTAGE in salsa
-Terms of trade: 1 salsa for 2.5 TVs
Get the Ultimate Review Packet
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If you want to skip the lesson and just practice go to 10:48. I spend the first have of the video explaining how to identify which country has an absolute advantage, calculate opportunity cost, identify which country has a comparative advantage, and find a terms of trade that both countries would voluntarily agree to. The second half of the video is an additional practice questions where I quickly go over the answers. I also added the answers below if you are in a hurry. Thank you for watching, please subscribe.
Additional Multiple Choice Questions
https://www.youtube.com/watch?v=WLfOZz-_JMY&t=6s
Unit 1 Summary Video (includes quick and dirty trick)
https://www.youtube.com/watch?v=JBHbwtzHfDg
ANSWERS
Situation #1 (5:30)
The US can produce 20 planes or 2 cruise ships
France can produce 12 planes or 2 cruise ships
-The US has an ABSOLUTE ADVANTAGE in planes
-Neither has an ABSOLUTE ADVANTAGE in cruise ships
-For the US, 1 plane costs 1/10 cruise ship and 1 ship costs 10 planes
-For France, 1 plane costs 1/6 cruise ship and 1 ship costs 6 planes
-US has COMPARATIVE ADVANTAGE in planes
-France has COMPARATIVE ADVANTAGE in cruise ships
-Terms of trade: 1 Cruise Ship for 7 Planes
Situation #2 (11:12)
Korea can produce 3 cars or 9 motorcycles
Germany can produce 4 cars or 8 motorcycles
-Germany has an ABSOLUTE ADVANTAGE in cars
-Korea has an ABSOLUTE ADVANTAGE in motorcycles
-For Korea, 1 car costs 3 motorcycles and 1 motorcycle costs 1/3 car
-For Germany, 1 car costs 2 motorcycles and 1 motorcycle costs 1/2 car
-Germany has COMPARATIVE ADVANTAGE in cars
-Korea has COMPARATIVE ADVANTAGE in motorcycles
-Terms of trade: 1 Car for 2.5 Motorcycles
Situation #3 (13:22)
Japan can produce 4 laptops or 12 phones
Brazil can produce 1 laptops or 5 phones
-Japan has an ABSOLUTE ADVANTAGE in laptops
-Japan has an ABSOLUTE ADVANTAGE in phones
-For Japan, 1 laptop costs 3 phones and 1 phone costs 1/3 laptop
-For Brazil, 1 laptop costs 5 phones and 1 phone costs 1/5 laptop
-Japan has COMPARATIVE ADVANTAGE in laptops
-Brazil has COMPARATIVE ADVANTAGE in phones
-Terms of trade: 1 Laptop for 4 Phones
Situation #4 (16:08)
Cuba takes 4hrs to make a TV and 12hrs to make salsa
Mexico takes 1hr to make a TV and 5hrs to make salsa
-Mexico has an ABSOLUTE ADVANTAGE in TVs
-Mexico has an ABSOLUTE ADVANTAGE in Salsa
-For Cuba, 1 TV costs 1/3 salsa and 1 salsa costs 3 TVs
-For Mexico, 1 TV costs 1/5 salsa and 1 salsa costs 5 TVs
-Mexico has COMPARATIVE ADVANTAGE in TVs
-Cuba has COMPARATIVE ADVANTAGE in salsa
-Terms of trade: 1 salsa for 2.5 TVs
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- published: 29 Aug 2017
- views: 1022494