10/24/2019 · 80. Which of the following is eroding the U.S. comparative advantage ? A.The spread of technology. B.The law of one price. C.A depreciating dollar. D.Intellectual property rights. As technology spreads, foreign countries can compete on a broader range of goods. As long as wages in foreign countries are lower than in the United States, this will …
What is eroding US comparative advantage ? The spread of technology. What does the appreciation of a country’s currency do to it’s comparative advantage ? It makes it worse because foreign goods are cheaper to buy, and it’s more expensive for foreign countries to buy from you.
The textbook refers to the type of comparative advantage that can be gained or lost because of changes in skills of workers or types of capital as: A. unstable comparative advantage . B. transferable comparative advantage . C. nonequilibrium comparative advantage . D. temporary comparative advantage . This is simply applying what we covered in class.
The following story is meant to explain some of the insights within the theory of comparative advantage by placing the model into a more familiar setting. A Gardening Story Suppose it is early spring and it is time to prepare the family backyard garden for the first planting of the year.
comparative advantage in a world of free trade • Comparative advantage cannot be counted on to create…net gains greater than the net losses from trade • But if you respond with tariffs and protectionism, you may be breeding economic arteriosclerosis 6, may increase the number of jobs in services because the United States has a comparative advantage in facilitating trade. The fact that most U.S. citizens learn English from birth is a source of: comparative advantage for the U.S. because English is the international.
Laypeople worry that since wages are lower in China, it has a comparative advantage in all goods and the United States will lose all its jobs. Economists recognize that trade occurs in more sectors than manufacturing. They see the comparative advantage that the United States has in trading services.
