Thank you for the opportunity to help you with your question!
An example that combines features above is a country that specializes in
the production of high-tech knowledge products, as developed countries
do, and trades with developing nations for goods produced in factories
where labour is relatively cheap and plentiful, resulting in different
in opportunity costs of production. More total output and utility
thereby results from specializing in production and trading than if each
country produced its own high-tech and low-tech products.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 13th, 2015
Are you studying on the go? Check out our FREE app and post questions on the fly!