Foreıgn Trade Deneme Sınavı Sorusu #1374741
Which one of the following is an example of acquired advantage within the theory of absolute advantage?
Brazilian coffee |
Saudi Arabian Petroleum |
Turkish hazelnut |
Danish silver-cutlery sets |
Dutch tulips |
Absolute advantage occurs in two ways: Natural Advantage and Acquired Advantage (Daniels, 2004, p. 145).
a. Natural Advantage; A country’s advantage to other countries due to its climate, natural resources and labor ability. Ex.; Brazil-Coffee, Saudi Arabia-Petroleum, Turkey-Hazelnut
b. Acquired Advantage; A country’s advantage in terms of products. The advantage gained in product technology is that a country produces unique products that can be easily distinguished from its competitors. Ex.; Danish silver-cutlery sets, Kütahya ceramics and porcelain
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