Mini video: Absolute advantage and comparative advantage (1)

[@ken4570]

its 2022 bt ur content is still valued
thnks for being a life saver

[@simmndsd3885]

I'm Grateful to coming across ur channel

[@IrisFranz]

Happy learning!

[@NbingeJoseph]

I really love the way you have simplified the lesson.

[@chaumbambondo3961]

I salute you professor. You're really good

[@MingLeng-l5v]

Your method is fabulous!!!

[@islam.naimul]

Love from Bangladesh.
THANK YOU!
❤

[@rma1808]

Thank you so much.. I understood it so well
Lots of love from India ❣️💖

[@nancybasnett9390]

Thank you so much for making this topic understandable!

[@IrisFranz]

You’re welcome!

[@lemlemdema567]

Thank you Iris Franz

[@tukitaki6936]

Hi ma'am, the answer would be ..China has comparative advantage of producing shoes. China can produce 1 shoe at the cost of 1 ibuprofen. Whereas, USA can produce 1 shoe at the cost of 2 ibuprofen.

[@IrisFranz]

That’s correct; nice job!

[@jenniferdiaz5469]

Thank you ,now I understand the meaning of comparative advantage

[@laura4pf]

lovely video, thank you!

[@dishalovena7428]

can u help me with this question please, The table shows the costs of producing a unit of food and a unit of clothing in countries X and Y,
expressed in the currency of each country.
country food clothing
X $2 $4
Y £1 £1
The exchange rate is fixed at £1 = $3.
What level of transport cost per unit of each commodity would exactly eliminate the benefits of
trade?
A £0.33 B £0.50 C £1.00 D £1.50

[@IrisFranz]

In country X, the opportunity cost of one unit of food is 1/2 unit of clothing. In country Y, the opportunity cost of one unit of food is one unit of clothing. According to the video, which country has a comparative advantage in the production of food?

[@muskaanbhatia8295]

China has comparative advantage shoes and thanks a lot ma’am ❤

[@dinasin2745]

I have a question pls. My question was the Comparative advantage in the production of shoes or Ibuprofen? You said China.

[@IrisFranz]

I want you to think. Please calculate the opportunity cost of shoes for both countries. Which country has a lower opportunity cost in the production of shoes? Then that country has a comparative advantage in the production of shoes.

[@dinasin2745]

@@IrisFranz hi, you said that if you want to find A, you trick B as the currency . And if I want to find B, I trick A as currency. it is correct.

[@IrisFranz]

@@dinasin2745 if you want to find the opportunity cost of A, yes treat B as currency.

[@dinasin2745]

@@IrisFranz Let say the comparative advantage in the production of shoes is China because the opportunity cost of shoes is lower than US.
US=10:5=2 whereas China=2:2=1.

[@senskoklu9599]

it was the best video i have ever watched about absolute and comparative advantage 🫶

[@brightonmembi5309]

Thank you🙏 simple and clear

[@limweidihwensantos6715]

hey .. Now i get it.... Are you still making videos on principles of economics?

[@IrisFranz]

Absolutely!

[@jessicaknows6881]

I have a question, when we divide and we get for example 0.5 would the opportunity cost be 2/4? Also do we have to find the lowest common factor or no?

[@IrisFranz]

The opportunity cost of a pair of shoes in the U.S. is 10/5 which is equal to 2 bottles of ibuprofen.

[@jessicaknows6881]

@@IrisFranz have you made a video on exchange rates and how to find it for macroeconomics?

[@xXxGoldenBoyxXx1]

Thank you, very helpful!

[@asmafaisal6538]

Omg u saved my life ❤

[@ngocanhkim6557]

oh my god, you look like a chinese famous actor

[@okvlogs6896]

Great explanation ma'am

[@IrisFranz]

Glad it was helpful!

[@therelaxedgirl1071]

I was really struggling with this thank you so much

[@IrisFranz]

Glad to help!

[@mitrabor3043]

Excellent ;thnaks

[@IrisFranz]

You’re welcome. Happy learning!

[@mariamh1193]

U are a life saver thank you😘

[@IrisFranz]

You're welcome 😊

[@nisha7100]

perfect mam 👌

[@peterJeremiahs]

thaks

[@naimakhatun3120]

Thanks from Bangladesh

[@IrisFranz]

You're very welcome!

[@kyawthiha4718]

Thank you

[@senspower01]

thank you!!