The currency exchange and convertibility is necessitated and facilitated by the urge of global trade. So, the purpose of currency convertibility is to accelerate the pace of international trade among trading partners for healthy economic growth and development. Meaning and Need of open economy It is the system of economy in which government grants freedom …
How are opportunity cost and comparative advantage interlinked? What is mean by opportunity cost? How does opportunity cost influence decisions? Why are they important for free trade? If you think that these questions are worthwhile, then, let’s do it. “Scarcity = >choices => opportunity cost => comparative advantage => specializations => economies of scale => …
“Whenever we went for protective measures, we found ourselves into deep trouble. On the contrary, whenever we advocated the cause of the Free Trade, we witnessed recovery and boom.Then, isn’t it highlight the importance of free trade system? “Meaning of free trade system” It is a broad trading network of many trading nations for restriction …
Suppose, a shoe manufacturing plant produces 100 units of running shoes at $100 per unit. At this level, the cost per shoe remains unchanged. But, cost starts declining with increase in production. This changed cost effect of any product is termed as economies of scale strategy. Truly, this is very instrumental in the modern world …