According to the World Bank, Kenya has a comparative advantage in services production, and it exports a higher share of services than other countries with similar levels of development. Kenya also leads the EAC in the number of practicing professionals in certain services sectors, including accountants and lawyers.
What are the advantages of Kenya?
Kenya has the potential to be one of Africa’s success stories, given its growing youthful population, a dynamic private sector, skilled workforce, improved infrastructure, a new constitution, and its pivotal role in East Africa.
What countries have a comparative advantage?
For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows. China has a comparative advantage in electronics because it has an abundance of labor.
Does every country have a comparative advantage in something?
It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods. An absolute advantage exists when a country is simply the best (most efficient) in producing a product or service.
Who has the comparative advantage?
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.
Is Kenya a 3rd world country?
Yes, Kenya is a third world country. While the country has recently gotten lower-middle-income stature, not every Kenyan has benefited from the heightened wealth.
What is Kenya main source of income?
The Economy of Kenya is a market-based economy with a few state enterprises. Major industries include agriculture, forestry, fishing, mining, manufacturing, energy, tourism and financial services.
What’s an example of comparative advantage?
Comparative advantage is what you do best while also giving up the least. For example, if you’re a great plumber and a great babysitter, your comparative advantage is plumbing. That’s because you’ll make more money as a plumber.
What does China have a comparative advantage in?
The model predicts that China has a comparative advantage in heavy goods in nearby markets, and lighter goods in more distant markets. This theory motivates a simple empirical prediction: within a product, China’s export unit values should be increasing in distance.
What does Switzerland have a comparative advantage in?
A country is said to have a comparative advantage in whichever good has the lowest opportunity cost. That is, it has a comparative advantage in whichever good it sacrifices the least to produce. In the example above, Switzerland has a comparative advantage in the production of chocolate.
Has a comparative advantage in producing lumberjack boots?
Canada has a comparative advantage in producing lumberjack boots. … Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts.
How do you identify comparative advantage?
Taking this example, if countries A and B allocate resources evenly to both goods combined output is: Cars = 15 + 15 = 30; Trucks = 12 + 3 = 15, therefore world output is 45 m units. It is being able to produce goods by using fewer resources, at a lower opportunity cost, that gives countries a comparative advantage.
Which is the best example of a country that is dependent on other countries?
The best example of a country that is dependent on other countries is a country that has very little or less fertile soil to make its resources.