interdependence-and-profits from merchants

1. what is trading?
2. why people choose to depend on trade?
3. what can affect the trade?

1.TRADE OR FRIENDLY

• exchange activities of goods or services or both based on mutual agreement.

2.DEPENDS ON TRADE

• because with the trade people will get a variety of goods or services they need.
•  the principle of comparative advantage

ADVANTAGES ABSOLUTE can be seen from the comparison of raw materials and productivity of a person, company or other parties. a producer is judged to have an absolute advantage if they require only a small quantity of raw material to produce an item.

COMPARATIVE CHARGES AND COMPARATIVE CHARGES a producer has a different opportunity cost in producing goods of comparative advantage can be seen with two products of goods.

3.SPECIALIZATION AND TRADE

• specialization affects the choice between producing or buying.
• factors and possible production

used manufacturers to decide the option between trades or not.

STUDIKASUS

relations between Indonesia and east leste, the two countries can produce coffee and pepper. In practice Indonesia can produce more coffee more efficiently and cheaply, but Indonesia can not produce pepper more efficiently and cheaply than eastern leste.

in this case Indonesia has a comparative advantage in producing coffee, while eastern leste has a comparative advantage in producing pepper.maka both countries can benefit each.

 

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##@mundar