Economics Homework Help

Select a country of your choice (other than Saudi Arabia) and discuss its comparative advantage. What are the sources and the challenges? What is the role of the government? What policies should the government implement to enhance the comparative advantage?

Embed course material concepts, principles, and theories, which require supporting citations along with at least one scholarly, peer-reviewed reference in supporting your answer unless the discussion calls for more. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.

POST 1

Comparative advantage When a country produces a good or service at a lower opportunity cost than other countries, it also can generate larger sales and profit margins (U.S. Bureau of Labor Statistics). Firms hire three methods to compete successfully. First, they could be the low-cost provider. Second, they could offer a better product or service. Third, they could focus on one type of customer.

In the 1990s, India initiated a series of economic reforms aimed at opening the economy. Notable among these has been the extensive effort to liberalize its international trade which projected to have resulted in changes in the composition of exports to reflect India’s comparative advantage in the global economy. The continent is endowed with abundant natural resources, including coal (4th biggest reserves in the world), iron ore, manganese ore (7th largest reserve in the world as of 2013), mica, bauxite (5th largest reserve in the world as of 2013), chromite, natural gas, diamonds, limestone, and thorium. (Nagpur, India. Reuters).

India should also improve its education system and modify its labor laws and worker protection legislation. These have a significant impact on firms’ competitiveness. The latter protects people who have work while discouraging job development in the economy’s organized sector (From John Wes). Priority has been placed by the government on increasing work opportunities for younger generations while concentrating on rapid economic growth (Peter F. Drucker).

References:

(U.S. Bureau of Labor Statistics). Bureau of Labor Statistics Forms

John West is Adjunct Professor at Sophia University. He is author of Asian Century… on a Knife-edge (Palgrave Macmillan, 2018).

“Manganese Ore India plans to up production, invest Rs 1,200 cr in phases”. The Indian Express. Nagpur, India. 8 January 2013.

“UPDATE 2-India’s top court keeps bauxite mining ban, eases some iron ore curbs”. Reuters. 18 April 2013.

Peter F. Drucker (1909–2005) Author and management consultant