Explain the distinction between comparative advantage and competitive advantage. Thereafter, provide examples in international commerce.
International finance focuses on macroeconomic research and monetary transactions between two countries. The common topics studied under this are the exchange rate, interest rate, and investment prevailing between two nations.
Answer and Explanation: 1
The competitive advantage and comparative advantage are distinguished in the below table:
|Content||Competitive advantage||Comparative advantage|
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fromChapter 20 / Lesson 5
International corporations encounter political risks created by laws and policies of different countries that have financial implications. Learn how political risk is evaluated and mitigated by international corporations.