Question

You have been hired to be part of the International Office of Centennial College. Your team...

You have been hired to be part of the International Office of Centennial College. Your team has been assigned to evaluate different countries to support an upcoming decision for the college to expand operations and open a campus in these countries. Your team is also tasked with evaluating the capacity of the college to expand to these countries.

Which theory of international trade will most influences the college’s decision to expand operations in Brazil. Do not forget to provide an explanation.

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Answer #1

In the given situation the most effective trade theory that can be used is the comparative advantage theory of trade.

Comparative advantage is enjoyed by the country when the country is able to produce any product or service with greater efficiency than the other countries. The main focus of the comparative advantage is on the relative productivity of the various countries.

This theory can be used in the given scenario as the team can analyze the efficiency of Brazil in comparison to the other countries and if the country has greater productivity then it can be selected.

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