Economy, asked by maikelswargiary2017, 11 months ago

what happen if the cost difference is the same in two countries​

Answers

Answered by laraibmukhtar55
3

If production cost between two countries are same:

If the cost different between two countries are equal or if opportunity cost are same between two different countries then there would be nothing to gain from gaining expertise, the countries are alike and there is no advantage from producing the good overseas rather than at home.

Hope it helped.........

Answered by jitendrakumar42015
0

If the cost difference is the same in two countries

Explanation:

  • The principal reason for worldwide specialization and henceforth global exchange is the distinction in expenses of generation.  
  • It is the relative contrasts in costs that decide the items to be delivered by various nations. Thinking about climatic conditions, accessibility of mineral and different assets and contrasts in costs emerging from them, each nation is by all accounts more qualified for the creation of specific articles instead of for other people.  
  • A nation will, in general, have practical experience in the generation of those merchandise for which it has a family member or relative bit of leeway.
  • A nation can create various merchandise. In any case, it won't create every one of them since it will just not be paying to do as such. It will be greatly improved if, in the wake of contrasting the expenses of the different articles that it can create, it chooses those in which the similar expenses are lower or in which it appreciates a relative preferred position.  
  • It will be to the benefit of every nation just as of the world all in all that every nation works in the generation of those items for which it has a similar preferred position. Along these lines, the profitable assets of the nation and of the entire world will be ideally used.

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