25m comparative advantage and trade

• What is comparative advantage?

  The ability to produce at lower opportunity cost
• Why is comparative advantage important for international trade?

  It allows countries to specialize and benefit
• What are trade patterns?

  Trends in goods a country exports and imports
• How do technological advancements affect comparative advantage?

  They can alter efficiency and introduce new industries
• What occurs as technology evolves in a country?

  Shift towards high-tech industries and increased exports
• What is the significance of enhanced technology for countries?

  It leads to global competitiveness and economic growth
• Who benefits the most from technological advancements?

  Industries with strong technological development
• How do workers react to technological advancements?

  Skilled workers benefit, unskilled may face obsolescence
• What is a potential negative impact of technological advancements?

  Wider economic gaps between nations and inequality
• What can changes in resource endowments lead to?

  Alteration of comparative advantage and trade patterns
• What occurs with new resource discoveries?

  Specialization in resource extraction and increased exports
• Why is the influx of foreign revenue significant?

  It improves a country's trade balance
• Who benefits from resource discoveries in local communities?

  Job creation and infrastructure development
• How does increased government revenue from resources help?

  Enhances fiscal capacity for public investment
• What is a potential downside of resource discovery?

  Over-reliance on a specific sector (resource curse)
• Why is sustainable resource management important?

  To prevent negative long-term effects like instability
• What can happen if economies do not diversify?

  They may face environmental degradation and instability