https://padlet.com/emanuelsordi04/8s42jwt9weqj Come and learn about an Economic theory that surrounds our world en-us 2016-11-27 22:39:46 UTC 2024-05-08 04:08:52 UTC hello@padlet.com emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140063154 In this picture Country A has an absolute advantage over country B in the production of food and clothes but County A has an comparative advantage in food since the difference is much larger between the the two countries in that production compared to the production of Clothing.]]> 2016-11-28 00:01:49 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140063154 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140065273 In this video the man gives you an example of two countries and how even though one has an absolute advantage it is better for each country to specialize in their own production since they can reach a better possible production frontier. Also in the video i learned that it was more efficient for each country to produce the product they specialize in since after they can trade for the other product after for less then it would have cost them to make it.]]> 2016-11-28 00:34:50 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140065273 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140066953 In this picture below the company  has an Absolute Advantage since no other company can compete with them.]]> 2016-11-28 01:00:00 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140066953 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140068484 In this video i learn that opportunity cost plays a big role in the world of production and trade. For example in the video i learn that due to the opportunity cost of cups charlie decided to specialize in making cups since he can can do it for less opportunity cost then patty and since patty can produce plates with less opportunity cost then charlie she does that. Later when it comes to charlie wanting plates he can trade what cups he has made for the plates since it would be cheaper than making them and vice versa for patty, therefore if the opportunity cost effects what each person will produce.]]> 2016-11-28 01:15:55 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140068484 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140079992 The theory of Comparative Advantage is limited in the real world and unfortunately it can have drastic consequences  like it has in the past. According to the Broadbent institute blog, "the wheat economy of the prairies which collapsed in the 1930s with disastrous consequences".  Also the Comparative Advantage Theory has helped create production in our economy through deals which push us to produce and export more goods due to certain terms, for example NAFTA removes many tariffs and other trade barriers giving us more access.]]> 2016-11-28 03:45:21 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140079992 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140084773 Opportunity cost is very important when it comes to comparative advantage because it is the way we calculate which country is gonna specialize in producing what since it tells us our gain and our loss in certain chosen alternatives.]]> 2016-11-28 04:54:26 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140084773 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140341144 In this video i learned that even though a country like Canada can have an absolute advantage in producing almost everything compared to Niger they can still trade with them due to opportunity cost. This opportunity cost is the thing that helps Canada determine which countries to make deals with each year as well as what we are going to produce for those countries. Therefore even though a country may have an absolute advantage doesn't make that it is better for that country to produce those things which i learned through the video. ]]> 2016-11-28 21:02:05 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140341144 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140360383 After reading this post on the website i learned more about comparative advantage and how it benefits trade. The main idea on how comparative advantage benefits trade is by it gives a country a certain good to specialize and produce which mathematically and theoretically should help them trade other countries for their specialized goods and be able to get more of those goods from the other county rather than if they were to produce that good themselves, this is also goes with concept of Opportunity Cost where you determine the loss and gain when you choose certain alternatives. ]]> 2016-11-28 22:45:26 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140360383 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140364138 Comparative advantage is important because theoretically it says that countries who apply this method when trading between one another will have an combined increased output rather than if both countries specialized in producing both good for themselves. This is important because if we know that we can have more of a good for less of an opportunity cost then it can help use our resources effectively as well as same them to.]]> 2016-11-28 23:15:57 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140364138 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140391901 My thoughts and opinions about this assignment ]]> 2016-11-29 02:39:14 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140391901 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140392406 2016-11-29 02:45:46 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140392406 emanuelsordi04 https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140392644 Here you will learn about an surprisingly interesting economic theory that was developed by a classical economist David Ricardo ]]> 2016-11-29 02:49:00 UTC https://padlet.com/emanuelsordi04/8s42jwt9weqj/wish/140392644