Businesses are able
to export goods and services where they have a competitive advantage.
That means they are better than any other companies at providing that product.
They also export
things that reflect the country's comparative advantage. Countries have comparative advantages in the commodities
they have a natural ability to produce. For example, Kenya, Jamaica and
Colombia have the right climate to grow coffee. That makes them more likely to
export coffee. India's population is its comparative advantage. They have a
large population of people who speak English and are familiar with English laws. That gives them an
advantage in skilled yet affordable call center workers. China has a similar
advantage in manufacturing. That's because its population has a lower standard
of living. They will work for lower wagers than people in other countries.
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