The idea of selection, insufficiency and opportunity cost is what economics is composed of. If we have to give up one good in order to acquire another, then the good is scarce. However, we can only make choices if they are available to us and the price of any choice is the worth of the most ideal alternative that has to be foregone and in economic terms, it is the opportunity cost.
Three examples of opportunity cost.
Like everyone else, I continually find myself faced by the need to make choices in my private, social and professional life as illustrated below:
Examples:
1. I was searching for a job some years back and I finally got two offers at the same time. I really needed a job but it was so overwhelming for me to decide which one to pick. …show more content…
Free trade is the business that transpires through the borders of a country. Historically, international trade attracted taxes, tariffs and government regulations in order to encourage entrepreneurs to concentrate their businesses within the country. However, during the recent centuries the fees have been lifted to form what is known as free trade. It is still controversial as some people prefer the move while others oppose it. Below are the pros and cons of free trade:
Pros.
- Lower prices due to the fact that the tariffs have been …show more content…
When business are allowed to cross borders, it reduces the conflicts that exist and business assume the responsibility of making sure that the economies stay strong.
- Inflow of capital. Firms selling their goods across the boarders are bringing in money to their own countries which can be used to subsidize their own values and skills.
Cons.
- Small businesses are left out while large corporations choose to source for the cheapest labor across the border. Overall, developed countries have an upper hand compared to developing countries because they have the ability to operate cheaply abroad.
- Economic dependence. Instead of concentrating on developing their own economy, firms are encouraged to rely on their imports. If something went wrong in the country that they depended on, then their economy would breakdown.
- Inequality. When it comes to shared resources in a country, the region where the reserve is located can benefit more than the rest of the country if they export the product
Three examples of opportunity cost.
Like everyone else, I continually find myself faced by the need to make choices in my private, social and professional life as illustrated below:
Examples:
1. I was searching for a job some years back and I finally got two offers at the same time. I really needed a job but it was so overwhelming for me to decide which one to pick. …show more content…
Free trade is the business that transpires through the borders of a country. Historically, international trade attracted taxes, tariffs and government regulations in order to encourage entrepreneurs to concentrate their businesses within the country. However, during the recent centuries the fees have been lifted to form what is known as free trade. It is still controversial as some people prefer the move while others oppose it. Below are the pros and cons of free trade:
Pros.
- Lower prices due to the fact that the tariffs have been …show more content…
When business are allowed to cross borders, it reduces the conflicts that exist and business assume the responsibility of making sure that the economies stay strong.
- Inflow of capital. Firms selling their goods across the boarders are bringing in money to their own countries which can be used to subsidize their own values and skills.
Cons.
- Small businesses are left out while large corporations choose to source for the cheapest labor across the border. Overall, developed countries have an upper hand compared to developing countries because they have the ability to operate cheaply abroad.
- Economic dependence. Instead of concentrating on developing their own economy, firms are encouraged to rely on their imports. If something went wrong in the country that they depended on, then their economy would breakdown.
- Inequality. When it comes to shared resources in a country, the region where the reserve is located can benefit more than the rest of the country if they export the product