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How does the introduction of a foreign product in the U.S demonstrate the influence of absolute and comparative advantages?

2007-03-27 05:37:52 · 1 answers · asked by cindy 1 in Social Science Economics

1 answers

When another country can make more widgets in less time than America it frees up America to make other things that we can make more of at a lower cost. Other countries trade the overage to America and vise verse. The things that we can make faster and better we have the absolute advantage over and we trade it to other countries

2007-03-27 06:02:38 · answer #1 · answered by evolving_40 2 · 0 0

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