Trade Union Act

relative Advantage opening: Australia is importing goods and work which ar comparatively more efficient to produce overseas and atomic number 18 comparatively more coveted than abroad and exporting goods and services which atomic number 18 comparatively more efficient to produce than on board and comparatively more desired abroad. This takes the theory of absolute usefulness one step further. Limitations: ? drop-off in jobs due to turnout units relocation overseas ? change magnitude transport appeals increases the greet of the product dis gain to the customers in umpteen cases ?Increased distinctiveness whitethorn lead to diseconomies of scale ?Comparative advantage measures static advantage but not whatsoever dynamic advantage ?Different goods sacrifice variant grab of motive so when global demand may be falling, an economy specializing in producing the product may not compound enough money and may point producing the product or loss for the inv estors ?Identical goods may be traded 1)Factor Proportion Theory: The theory explains that in a two-country, two- occurrenceor, and two-commodity framework different countries are endowed with varying proportions of different factors of production. A country with a macroscopical labour quarter provide be able to produce the goods at a first baseer cost utilize a labour intense mode of production.

Similarly, countries with a large supply of capital will specialize in goods that consume a capital intensive mode of production. After the trade, both(prenominal) the countries will have two types of goods at the least cost (Ohlin, 1967). Limitations: ?Lots of similar products w ith updates and low price are introduction ! the market is a dispute for the existing products (i.e. Android anovulant market etc .) ?Companies introduce products in many markets simultaneously to reclaim a products research and development be before sales turn down and causes dumping of the products which reduces topical anesthetic business . ?The theory is challenged by the fact that more companies are operating in...

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