BMK 201 Chapter Notes - Chapter 1: Tunxis Community College, Comparative Advantage, Absolute Advantage
6 Jan 2021
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Document Summary
International market engagement is a key aspect of australian agribusiness. Approx 47% of australian agribusiness activity in egaged in the international market. Domestic market actions do not really influence international prices. Australia is a small country in most international markets. Trade between nations facilitates more efficient use and distribution of scarce resources and usually results in improved economic and social wellbeing. If your country uses fewer resources to produce a given unit of output than the other county. If your country can produce the output at a lower marginal cost in terms of other goods foregone than the other country (opportunity cost) A country faces opportunity costs when it employs resources to produce goods and services. E. g. a limited number of workers could be employed to produce either wine or cheese. The opportunity cost of producing wine is the amount of cheese not produced.
