1.
A. Comparative Advantage: This theory suggests that countries should specialize in producing goods and services in which they have a lower opportunity cost than other countries. In other words, countries should produce and export the goods they can produce at a lower cost and import goods that they cannot produce efficiently.
B. Absolute Advantage: This theory suggests that countries should specialize in producing goods and services in which they have an absolute advantage over other countries. This means that a country can produce a product more efficiently than any other country.
C. Mercantilism: This theory suggests that a country should export more than it imports, with the goal of accumulating wealth in the form of gold and silver.
D. Heckscher-Ohlin Theory: This theory suggests that countries will export goods that require abundant factors of production and import goods that require scarce factors of production.
E. Porter’s Competitive Advantage: This theory suggests that a country’s competitiveness is determined by its ability to innovate and upgrade its industries, as well as the quality of its business environment.
2.
Top producers of the following are:
a. Oil: United States, Saudi Arabia, Russia, Canada, and China
b. Rice: China, India, Indonesia, Bangladesh, and Vietnam
c. Chocolates: Ivory Coast, Ghana, Indonesia, Nigeria, and Cameroon
d. Wines: Italy, Spain, France, United States, and Argentina
e. Sugar: Brazil, India, European Union, China, and Thailand
f. Software: United States, China, Japan, Germany, United Kingdom
3.
Top agricultural producing countries are:
China, United States, Brazil, India and Russia.
4.
Top export products of the Philippines are:
Electronic equipment, machinery, wood products, fruits and nuts, and processed food.
5.
Examples of countries with absolute advantage are:
a. Saudi Arabia in oil production
b. Russia in natural gas production
c. Brazil in coffee production
d. Switzerland in the production of luxury watches
e. Japan in the production of high-tech electronics.
