Examples of Comparative Advantage Often Begin with Two Countries That

question 50

Essay

Examples of comparative advantage often begin with two countries that each produce the same two goods.Each country is then shown to have a comparative advantage in producing the good it can produce at a lower opportunity cost,and specializes in the production of the good for which it has a comparative advantage.How do these examples prove that both nations are made better off as a result of trade than they would be without trade?

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Definitions:

Kinesthesis

The sensations generated by receptors in the muscles, tendons, and joints that inform us of our skeletal movement.

Skeletal Muscles

The muscles attached to the skeleton that are responsible for movement and posture, under voluntary control.

Tendons

Fibrous connective tissues that attach muscles to bones, playing a critical role in the movement of skeletal parts.

Transduction

The process by which sensory stimuli are converted into neural impulses to be interpreted by the brain.