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In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. I chose to take a look at Ireland which is typically described as a small, open economy. Ireland has an established comparative advantage in producing grass-based milk and meat which provides cost and food efficacy advantages at a global level (Gill, 2016). Ireland has this comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows.
In addition, is it better for a country to export more or to import more?Exporting can bring profits to a country or money into a country, helping stimulate its economic growth. Because imports may represent goods that another country cannot make, the exporting country often has a comparative advantage (Imports vs. Exports, 2021). The exporters may produce the goods at a lower opportunity or financial cost.
Gill, J. (2016, October 24). Brexit demands new efficiencies from Irish food industry. The Irish Times. Retrieved February 15, 2022, from https://www.irishtimes.com/business/agribusiness-and-food/brexit-demands-new-efficiencies-from-irish-food-industry-1.2840300#:~:text=Ireland%2C%20by%20definition%2C%20is%20a%20small%20and%20open%20economy.&text=Ireland%20has%20an%20established%20comparative,system%20remain%20fragmented%20and%20inefficient (Links to an external site.).
Imports vs. exports: Definitions and differences. Indeed Career Guide. (2021, May 13). Retrieved February 15, 2022, from https://www.indeed.com/career-advice/career-development/import-vs-export