ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Specialization
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Voluntary Trade
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Either A or B
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None of the above
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Detailed explanation-1: -Specialization in business involves focusing on one product or a limited scope of products so as to become more efficient. Specialization can increase productivity and provide a comparative advantage for a firm or economy.
Detailed explanation-2: -For example, one country might specialize in producing coffee beans, which gives this specific country a competitive advantage.
Detailed explanation-3: -For example, if a country is skilled at making both cheese and chocolate, they may determine how much labor goes into producing each good. If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.
Detailed explanation-4: -Capital goods, unlike consumer goods, are used to produce other goods. Capital goods don’t go straight into the manufacturing of other goods. Those goods are called “raw materials.” Instead, capital goods are part of the process of making other goods or providing services.
Detailed explanation-5: -Labor specialization. Labor specialization is now commonplace in the workplace and is an important part of production. Departmental specialization. Business specialization. Regional specialization. Country specialization. 15-Feb-2021