TDBS Absolute vs Comparative Advantage
Channel: Carden Madzokere
Date: 2021-02-28

Reasons for International Trade:
~ Demand reasons for international trade
    - Level of income
    - Consumer preference and tastes
    - International migration
    - Level of development
    - Religious, Socio-cultural
~ Supply reasons for international trade
    - Natural resources are unevenly distributed
    - Climatic conditions differ
    - Labour resources are unevenly distributed
    - Technology differs from country to country
    - Specialisation
    - Capital
    - The principle of absolute advantage apply
    - The principle of comparative advantage apply