What is intertemporal comparative advantage?
What will be an ideal response?
Intertemporal comparative advantage arises when a country can produce goods for future consumption at a relatively low cost in terms of current consumption. Such a country can import investments (loans) from other countries with intertemporal comparative disadvantages at terms of trade that benefit both countries.
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A firm finds that it can produce several different goods at a lower average cost by using some of the same production facilities than it could if it produced each of the goods with separate production facilities. This firm is
A) gaining economies of scope. B) gaining economies of team production. C) gaining economies of scale. D) incurring diseconomies of scale.
Diane lost her job and immediately started looking for another job. As a result the
A. unemployment rate remains constant. B. labor force increases. C. labor force decreases. D. unemployment rate increases.