What Are the Advantages and Disadvantages of Technological Advancements from the Viewpoint

question 27

Essay

What are the advantages and disadvantages of technological advancements from the viewpoint of FIs? Use examples where appropriate.

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Definitions:

Comparative Advantage

The ability of a country or firm to produce a certain good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently than its competitors, leading to greater output with the same input of resources.

Comparative Advantage

The ability of an entity to produce a good at a lower opportunity cost than another, leading to potential trade benefits.

Loads

Charges or fees that investors pay when buying or selling mutual funds, often used to compensate sales intermediaries.