HillCountry Com Adv

HillCountry Com Adv - Hill Country Comparative Advantage...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Hill Country Comparative Advantage When I first met Ahkbar Hadoobi in my Bus 187 class, I knew there was something  unique about the way he carried himself. Later I would find out that his father is actually a high- ranking official in the remote island of HillCountry. When he came to me with concern of the  inability for his native country to participate in international trade, I analyzed data provided by a  US consulting firm in regards to HillCountry’s economic activies. Immediately I noticed that  although HillCountry did not have an absolute advantage in international trade, they did  however hold a comparative advantage in trading hand-crafted blankets and wool.  I believe that HillCountry has a comparative advantage because although they cannot  produce corn or honey more efficiently than the US, they can however specialize in producing  blankets and wool. The definition of comparative advantage is “the ability of a country to  produce a particular good or service at a lower opportunity cost than another party.” In other 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2010 for the course BUS 187 at San Jose State.

Page1 / 3

HillCountry Com Adv - Hill Country Comparative Advantage...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online