How Can a Nation Create Comparative Advantage in Knowledge-Intensive Industries

question 20

Essay

How can a nation create comparative advantage in knowledge-intensive industries? What roles are played by governments and private businesses?

---

Definitions:

Fair Allocations

In economics and game theory, it refers to the distribution of resources or goods among participants in such a way that the allocation is considered equitable according to certain criteria.

Apples

A type of fruit that is grown on apple trees and comes in several varieties differing in sweetness, color, and size.

Oranges

A citrus fruit rich in vitamin C, cultivated and consumed worldwide, both fresh and as juice.

Utility Functions

Formulations representing a consumer's preference, measuring the relative satisfaction from consuming different bundles of goods.