Answered Essay: Select one trade theory and describe in 3-5 well-developed sentences its use today by a particular

Select one trade theory and describe in 3-5 well-developed sentences its use today by a particular region or country of your choice. Then answer in 2-3 well-developed sentences the questions that follow:

Trade Theory: [write name of trade theory here]

[Write a description of its use here]

1.    In what way(s) is the country or region affected by subscribing to this particular trade theory?

[Write your response here…]

2.    How is the health of its export business? Explain.

[Write your response here…]

3.    How does the trade theory in use encourage/discourage foreign businesses to set up operations in this country/region?

[Write your response here…]

Expert Answer

Absolute Advantage:

Absolute Advantage mean when a country has ability produce a product more efficielntly than other country that is called the absolute advantage. While other country had ability to produce other product than first country having thier abolute advantage:

Ans -1 – Australia is leading manufacurer in natural mineral around the whole world, no one is near around the competetion of Australia. Australia is leading the mineral production over the 50% of the total mineral prodcution. It has become attracting spot for having he natural resources of minerals and funding its GDP from it.

Ans – 2 – Australi is exporting its mineral in all countries around the world and enjoying the most of income of it GDP from the export of this minerals. Australis leading the export of minerals and seating atop in exporting minerals to rest of world.

Ans – 3 – Due to the vast natural resource of mineral the chinese businessmen has attracted towards the merger in this ores of mineral and establishing many partnership in Austalia. More and more chinese firm is arriving in Australis due to this opportunity.

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