Republic of uzbekistan andijan machine-building institute fundamentals of business management

Absolute superiority 
In different countriesAmong many companies, two economic principles are understood - sale and 
purchase. An absolute advantage exists when a country can produce goods or services at a lower 
price than other countries. This can occur as a result of the country's abundance of natural resources 
or raw materials. For example, some South American countries have an absolute advantage in 
coffee production and Arab countries in fuel production. 
Comparative advantage 
A country may have a comparative advantage over another region. If so, it must decide how to 
maximize its economic wealth. A country is better able to produce computers and clothing than 
others. The world market for computers may be stronger than that of clothing. This means that the 
country would be better off producing computers, but would have to buy clothes from other 
countries. Comparative advantage is the situation in any country that specializes in the production 
of a service or product that is more efficient than another. 
Import 
Imports are things bought from other countries. Without foreign trade, many things you buy would 
be more expensive or useless. Other countries produce some products at low prices because they 
have the necessary raw materials or cheap labor. If they are of better quality than domestic goods, 

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some buyers also buy them at high prices and buyers may prefer foreign products. French 
perfumes, Norwegian sweaters, Swedish watches are among them. 
To export 
Products or services sold to other countries are called exports. Imports are good for you, while 
exports are good for consumers in other countries. Workers around the world use US-made 
machinery. They feed on US agricultural products and use US-made chemicals, fertilizers, 
medicines and plastics. Foreign countries like US movies. They also watch CNN and ESPN. They 
read books, newspapers and magazines published by US companies. 1 in 6 jobs are related to 
international business in the United States.