Lesson 1.3 Homework Forums

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hw

by Zhewen Kong -
Number of replies: 0

1.Lumber and wood products

Agricultural products (wheat, canola, beef)

2.Agriculture (farming)

Fishing

Forestry (logging)

Mining

Oil and gas extraction

3.Pros:

Create jobs

Bring new technology and skills

Increase local economic activity

Cons:

Profits often leave the country

Decisions are made by foreign headquarters

4.Transportation (airlines, trucking)

Retail (stores, malls)

5.Absolute advantage: A country can produce a good more efficiently (using fewer resources) than another country.

Comparative advantage: A country can produce a good at a lower opportunity cost, even if it is not the most efficient overall.

6.

Because it may have a comparative advantage in producing something else. By focusing on what it gives up the least to produce and trading, both countries benefit more through specialization and trade.