Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    IM Assignment

    Uploaded by

    fissehaarsema16
    The document discusses the differences between absolute advantage theory and comparative advantage theory of international marketing. Absolute advantage theory refers to a country's ability to produce goods at a lower cost, while comparative advantage theory considers a country's ability to produce goods at a lower opportunity cost. It provides examples of how the theories differ in terms of trading, production efficiency, and focus.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    IM Assignment

    Uploaded by

    fissehaarsema16
    5 views3 pages
    The document discusses the differences between absolute advantage theory and comparative advantage theory of international marketing. Absolute advantage theory refers to a country's ability to produce goods at a lower cost, while comparative advantage theory considers a country's ability to produce goods at a lower opportunity cost. It provides examples of how the theories differ in terms of trading, production efficiency, and focus.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the differences between absolute advantage theory and comparative advantage theory of international marketing. Absolute advantage theory refers to a country's ability to produce goods at a lower cost, while comparative advantage theory considers a country's ability to produce goods at a lower opportunity cost. It provides examples of how the theories differ in terms of trading, production efficiency, and focus.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views3 pages

    IM Assignment

    Uploaded by

    fissehaarsema16
    The document discusses the differences between absolute advantage theory and comparative advantage theory of international marketing. Absolute advantage theory refers to a country's ability to produce goods at a lower cost, while comparative advantage theory considers a country's ability to produce goods at a lower opportunity cost. It provides examples of how the theories differ in terms of trading, production efficiency, and focus.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    AMERICAN COLLEGE OF TECHNOLOGY

    INTERNATIONAL MARKETING ASSIGNMENT

    Group members

    1. Addishiwot Abera

    2. Arsema Fisseha

    3. Bamlak Seyoum

    4. Edlawit Mekonen

    5. Efrata Kassahun

    6. Hanan Nuredin

    7. Hamelmal tilahun

    8. Kebron Mersha

    9. Yeabsira Adirse

    Submitted to- Mr. Manaye

    Submission date- Nov. 10,


    2023
    1. The difference between absolute advantage theory and comparative
    advantage theory of international marketing?

    Absolute advantage theory and comparative advantage theory are two important theories in
    economics developed by Adam Smith (father of economics). They explain how the limited
    resources of a particular nation can be used to produce goods and services. These theories mainly
    deals with the decision of how a particular nation can get advantages over their unique
    production fortes in international trade.

    Absolute advantage and comparative advantage theories are concepts that relate to international
    trade and economics. These economic policies can help determine how countries, companies or
    businesses choose to manufacture and trade for products. These two concepts influence decisions
    made by entities to commit natural resources and labor to produce specific goods.

    Similarities between absolute advantage theory and comparative advantage theories

    Both theories deal with production of goods and services between two or more nations

    Difference between absolute advantage theory and comparative advantage theories

     Absolute Advantage theory describes the ability of a specific country to produce goods
    at a lower cost per unit whereas comparative advantage theory describes the ability of a
    specific country to produce goods at a lower opportunity cost. Opportunity costs involve
    the benefits mainly profits that an entity loses when choosing one option over another.
     Absolute advantage theory evaluates how efficiently a single product can be produced
    for quality, quantity and profit whereas comparative advantage theory helps an entity
    select between several products to determine which has the greater return.

    We can see the difference between absolute and comparative advantages theory more by
    classifying it in to trade, production and economic effectiveness and focus.

     Trading

    Absolute Advantage: Trading is not mutually beneficial for two countries.

    Comparative Advantage: Trading is mutually beneficial for two countries.


     Production and economic effectives

    Absolute Advantage: A country with absolute advantage produces a higher volume of goods
    with the given amount of resources without accounting for the possibility of cost reduction.

    Comparative Advantage: A country with comparative advantage produces goods better than
    another nation with the same amount of resources and also encourages resource reallocation and
    import-export relationships between entities, improving the monetary return of all entities
    involved.

     Focus

    Absolute Advantage: Absolute advantage considers advantage of producing numerous goods.

    Comparative Advantage: Comparative advantage considers overall production of a nation


    during a given period.

    2. The opportunities and challenges of international marketing


    3. The barrier to the international trade of international marketing with the
    example

    You might also like