International Trade and the Law of Comparative Advantage

The law of comparative advantage focuses on the countries that are capable of producing goods at the least opportunity cost compared to their competitors in the international market. The concept is crucial because it determines the advantage of an economy over another in creating commodities. Trading partners specialize in products that they can manufacture at a lower opportunity cost, allowing them to exchange with others.

Exporting more while importing less is an ineffective approach for any economy. Attracting fewer goods into the country would disadvantage others by reducing the currency necessary to buy the exports. The strategy also affects the volume of commerce between trading partners. Therefore, for an optimal international market, nations must import and export goods and services more equally to maintain the balance of trade.

If consumers in the United States demand more bicycles at a lower international price, the country would import more. The price in the nation would decline to meet the global price. Therefore, consumers would benefit while producers would lose, but the former’s gains would outweigh the latter’s loss. The situation would create a balance in the economy.

Economists present various arguments for the use of tariffs in the international market, such as supporting growing economies, reducing the level of unemployment in a country, financing global trade, and enhancing national security. Therefore, tariffs are critical in businesses across national borders.

Subsidies initiate unfair competition by creating an artificial reduction in the cost of goods. The process transfers the income from the taxpayer to the exporter. It does not reduce the production cost; hence, society upholds the opportunity cost. The regulator subsidizes inefficient producers, relative to those in other economies, and exports goods in which they lack a comparative advantage.

How do you place an order?

It takes a few steps to place an order with Us:

  • The first step is to place your order. You will need to provide us with some basic information about your project.
  • Once you have placed your order, you will be taken to our secure payment page.
  • Once we receive your order, we will carefully review it and match you with a writer who has the skills and experience.
  • Stay in contact with the writer and discuss vital details of research.
  • Your completed proposal will be delivered via email within the specified deadline.

You are secure when using our service

It's critical for each client to feel secure. As a result, we at Research Proposal Writing take precautions to secure your data.

Financial security You may securely pay for your purchase using a variety of secure payment methods.
Personal security The personal information of our clients is secure. Nobody else will have access to it.
Academic security We use a specialized program to check every completed paper to ensure that we deliver no-plagiarism samples.
Web security This website is safe from unauthorized breaches. We maintain our privacy management in line with the latest laws and regulations.

You can get help placing your order. If you have any questions about our services, please contact us. Our support staff is accessible 24 hours a day, 7 days a week.

If you're still looking for a way to improve your grades and hire expert writers, we've got you covered. Place an order on our website, and we'll help you with any paperwork you want. We will exceed your expectations.

Order now Get a quote