FACULTY OF BUSINESS

SCHOOL OF ACCOUNTING

ACADEMIC REPORT

COURSE:

INTERNATIONAL TRADE

AUTHOR:

TEACHER:

HUARAZ - PERU

2023

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INDEX

INTRODUCTION

DEVELOPMENT

IMPORTANCE OF COMPARATIVE ADVANTAGE

CAUSES OF COMPARATIVE ADVANTAGE

EXAMPLE OF COMPARATIVE ADVANTAGE

REFERENCES

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INTRODUCTION

In this opportunity I will talk about the comparative advantage that is also called
relative advantage this advantage arises through some less privileged countries
it could be said that these countries had a lack of absolute advantages so they
become aware with these resources that if they have those who take advantage
for the production and export of the good that is better for them to export either
by the cost of production that has in comparison with other products. It is said
that the current economic theory and model is very important because it favors
the producer with comparative advantage in the same way that it favors the
economy of other countries that come to participate in commercial exchange.

DEVELOPMENT

Comparative advantage is an economic model which is very useful to

international trade because it becomes one of its important foundations, it refers
to the fact that it depends a lot on the productivity of the countries and the cost
of opportunities, according to that theory the countries will come to benefit
through bilateral relations and commercial exchanges. Then this will lead to
greater specialized production and a very good export worldwide, which will
help improve the lifestyle for the population.

A country in order to develop its comparative advantage must choose a certain

product, that choice must be the result of a careful analysis of its current
situation and the resources available for its production of said good and / or
service to export, so that in this way the opportunity cost is taken advantage of
and it reaches greater profitability.

IMPORTANCE OF COMPARATIVE ADVANTAGE FOR FOREIGN TRADE

Foreign trade favors countries for the acquisition of raw materials, inputs and
finished goods, this is achieved thanks to the commercial relations that are
established between the nations that offer and demand then it is there where
the comparative advantage plays a very important role because it allows both
parties to obtain a favorable benefit from the negotiations carried out then when
making the exchange each nation can sell and buy at a price less than its
opportunity cost as if it produced it; In other words, comparative advantage is

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very important for bilateral and multilateral treaties that are established through
foreign trade. Because nations offer goods and services at much more
attractive prices for other nations, which gives them the opportunity to be more
competitive and have a fruitful commercial exchange so that in this way they
can increase their production and can develop their industrialization of the
goods and services that come to offer their opportunity cost, which allows to
increase their patrimony and consequently their economy will improve.

CAUSES OF COMPARATIVE ADVANTAGE

It is said that, in the real situation of some countries of not having absolute
advantage in the production of some good or service, comparative advantage
arises. So, these countries after analysis choose, among several, the best
production alternative. That is, one in which your disadvantages as a producer
are minor. So, they choose goods or services that, compared to other countries,
have better productivity capacity. And for which the opportunity cost will allow
you to produce and market the product, and thus obtain the desired income
when marketing it, butin addition to that the environmental characteristics of
some regions, endowed with natural resources that favor the production of
certain goods. Which require specific characteristics for their production. As well
as the existing technological capacity in a country. They are factoring whose
use lowers the cost of production.

EXAMPLE OF COMPARATIVE ADVANTAGE

Suppose a country possesses certain environmental and technological

conditions that allow it to produce coffee and chocolate. Analyzing the situation,
you will find that in 1 working time you will produce 15 kg of coffee and in
the same hour you will produce 20 kg of chocolate. What shows that its
comparative advantage is in producing chocolate So, it discards the
production of coffee, specializing in producing and exporting chocolate.

REFERENCES
https://economia3.com/ventaja-comparativa-definicion/
https://economipedia.com/definiciones/ventaja-comparativa.html
https://estudiarvirtual.unipiloto.edu.co/blog/ventaja-comparativa-que-es/
https://blog.hubspot.es/marketing/que-es-ventaja-comparativa