Answer to Question #227917 in Microeconomics for Peter

Question

Comparative advantage and absolute advantage in the Philippines, 5 examples of each using your own words.

Answer 1

Areas where the Philippines have a comparative advantage in

1. The Philippines is endowed with abundant natural resources, which include marine resources and mineral resources.
2. The Philippines is strategically located in an area that is growing at a supersonic currently in the world today as compared to other countries.
3. The Philippines have a very hospitable and first-class lifestyle that is admirable to many people like tourists and investors.
4. The Philippines has the highest number of literate citizens since it has a good education system that is of global standards.
5. The Philippines has the highest number of people who are skilled in various fields like IT and Engineering.

Products in which the Philippines has an absolute advantage over other countries.

1. The Philippines has an absolute advantage in the production of pili nuts and the derivatives of pili nuts that exports to other countries.
2. The Philippines has an absolute advantage in the production of semiconductors and electronic products, which forms part of the major products sold in the international markets.
3. The Philippines has an absolute advantage in the exportation of copper and its related products since it has a huge endowment of mineral resources.
4. The cost of doing business in the Philippines is substantially low as compared to other countries, for example, America.
5. The Philippines have an absolute advantage in fish exports thanks to the surrounding Pacific Ocean and South China sea, which have unique fish species that are demanded highly in other countries.