Question

1) Make a comparative between Oman & Bahrain in the absolute advantage and comparative advantage, can be implemented:

1) Cars
2) Petroleum
3) Computers
4) Pharmaceuticals
5) Gold

- Discuss the likelihood that Oman & Bahrain would enjoy an absolute advantage, a comparative advantage, or no particular advantage of each of the above products

Answer 1

Absolute Advantage is the capability to produce more of a given product using less of a given resources than a competing entity. Comparitive advantage is the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

In Oman production of production of petroleum has more abosolute advantage than Baharin. Baharain is also produce petroleum products with more comparitive advantage. production of computers, pharmaceuticals , gold , and cars have no particular advantage of both countries

answered by: anonymous