ipl-logo

Comparative Analysis Of Ghana

920 Words4 Pages

Data and Methodology
This study uses the theory of comparative advantage to explain how Ghana’s resource endowments can give the economy a comparative edge and boast economic growth through exports. Empirical data is imported from the World Bank country database, IMF government of Ghana policy documents, CIA World Factbook and other sources to provide exposition of Ghana exports, challenges in value adding and recommendations making on transformation from primary to manufactures.
The theory of comparative advantage
The theory of comparative advantage by David Ricardo (1817); the foundation of trade submits that economies around the world differ in terms of their resource endowments and/or technological know-how; such as Ghana cocoa production, …show more content…

With this in mind, we can try to determine the relative world supply or demand for both Cocoa and clothe by finding the ratio of world supply or demand for cocao to that of clothes.At the point of equilibruim, the relative world price WPC/WPK is dertermined by the relative world supply(lets denote by WRS) and World Relative demend(WRD) curves.Assume the relative demand curve has a substituion effect and decreases as regards relative price(of clothe), based on our hypothesis that Ghana has a comprative advantage in cocao production, the possiblities for relative quantity supplied at a particular price is given as :If WPC/WPK =aLFC/aLFK < aLFC*/aLFK* ;China will produce clothes as the wage of WPK*/ aLFK* in clothes is better than WPC*/aLFC*. Indifference in Ghana will mean undefined quantity.If WPC/WPK is < aLFC/aLFK< aLFC*/aLFK*, both countries will produce clothes and supply quantity due to above reason is zero.Should aLFC/aLFK< WPC/WPK< aLFC*/aLFK*, Ghana specializes in cocoa whereas China spealizes clothes. Supplied quantity is given as ratio LF/aLFC of the total cocao production to that of wine.

Show More
Related

  • How Did Europeans Influence American Imperialism

    505 Words  | 3 Pages

    The Portuguese took sugar cane grass from South and East Asia and they planted it in Brazil. Then, they sold the cane sugar to Europe and North America. This sale made North America involved with the Triangle Trade. “The triangle trade fed the innovation-driven insatiability of British mills. Only after industrialization could advanced nations benefit from free trade, and they used their empires to force it on the developing world.”

    Read More

  • Compare And Contrast Mali And Ghana

    716 Words  | 3 Pages

    Mali and Ghana Essay Ghana and Mali were one of Africa’s greatest ancient civilizations. The Ghana kingdom was founded around the year 750, and developed between the Senegal and Niger River, while the Mali kingdom came about in 1240 after taking over Ghana. Rich in trade and supplies, their empires flourished under their rulers. The Ghana and Mali empire had a series of key similarities and differences throughout their years as a civilization, such as education, their culture, and their resource for trade.

    Read More

  • Relationship Between The Us And Brazil

    369 Words  | 2 Pages

    Team 6’s research concludes that the United States and Brazil are dominant western countries that have established profitable trade relations with each other. Through import and exports, each country has had a positive impact on the other, and from the data, Team 6 concludes that this relationship will continue into the foreseeable future. Brazil and the US both share a similar democratic government structure and a free market economic system that makes the nations compatible for trade. Additionally, in keeping with the comparative trade theory, each country exports goods in which they specialize in and import goods in which the other specializes in. Information gathered supports this conclusion as American imports agricultural products such

    Read More

  • West Africa Compare And Contrast Essay

    947 Words  | 4 Pages

    The societies of West Africa, Europe, and North America exhibited similarities and differences in their religious beliefs, values, and government systems. These contrasts and similarities were further made apparent during European expansion across the Atlantic and the subsequent new cross cultural interactions that were created. One way in which the societies of West Africa, Europe, and North America diverged was in their belief systems. Unlike Europe and North America, West Africa gradually adopted Islam in addition to its traditional religions. Islam diffused through the trans-Saharan trade with North Africa and by the 1200’s was assimilated into the Mali and Songhai Empire.

    Read More

  • Latin America Plundering

    220 Words  | 1 Pages

    , it will analyze the reason of why Latin America’s economy is not such as strong as it should be, taking into consideration that American’s territory was full of natural resources

    Read More

  • David Ricardo's On The Principles Of Political Economy And Taxation

    879 Words  | 4 Pages

    David Ricardo’s work “On The Principles of Political Economy and Taxation” written in 1817 is the example of classical writings about economics. The point Ricardo makes in Chapter 7 “On Foreign Trade” is generally that trade is beneficial and a basis for trade is comparative advantage (1817). The essay states that comparative advantage can be a reason for international trade; however there are still problems with its implication in practice. To prove that this paper will first explain Ricardo’s comparative advantage theory. Second, it will provide an example of Kazakhstan and Russia for more explanation.

    Read More

  • Empire Of Ghana Essay

    1554 Words  | 7 Pages

    The Ghana Empire was the first of the three major West African empires, and made many great progresses during its reign. However, the most important contribution that the Ghana Empire made during its rule was the advancement in trade. Because of its fine decision making in the taxing of the goods and the able rulers, Ghana was able to successfully expand its territory and become a very prosperous Empire.

    Read More

  • Protectionism Vs Free Trade Essay

    761 Words  | 4 Pages

    For Centuries people have been debating that a country should follow which school of thought to increase her economy but debate goes on and on because both of the thoughts have their own pros and cons and are applicable in certain pre conditions. Here I will try to explain both of the thoughts. Free trade is a policy followed by some international markets in which country’s governments do not restrict imports from, or exports to, other countries. Free trade is exemplified by European economic area and the Mercosur, which have established open markets. (Wikipedia)

    Read More

  • Coca Cola Demand Curve

    1041 Words  | 5 Pages

    DETERMINANTS OF SUPPLY CURVE 1. COST OF PRODUCTION: An increase in the cost of inputs of production such as sugar, caffeine and colors causes an increase in the cost of production. This means that an increase in cost will cause the supplier less willing to supply at a given rate. An increase in cost resulting from shortage of ingredients or disruption of supply is one of the common reasons why the suppliers cannot supply the product at a given price thus shifting the supply curve from S1 to S2.Adverse climatic fluctuations results in low productivity of agriculture which in turn affects Coca Cola.

    Read More

  • Compare And Contrast Maurya And Ethiopia

    71 Words  | 1 Pages

    The Maurya empire and the ancient African civilization of Ethiopia were both located near major waterways, which played an important role in their prosperity and success. However, they also both had governments which differently affected the way their people lived. Overall, we understand how both Ethiopia and the Maurya empire used their location to their advantage, but both their rulers set up different governments which influenced the lives of their

    Read More

  • Why The Following Statement Is False Essay

    214 Words  | 1 Pages

    More than the equilibrium indicates higher price, reducing the product’s or the good’s demand. This is why buyers would not be willing to pay more than the equilibrium price. 2. Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?

    Read More

  • Impact Of Globalization In Sub-Saharan Africa

    828 Words  | 4 Pages

    Globalization and International trade in Sub-Saharan Africa By Sukai Jallow Ashesi University College A Proposal Summited to Dr. F.A Cooke Ashesi University College January, 2017 Research topic: Globalization and International trade in Sub-Saharan Africa Research questions: How has globalization impacted International trade in Sub-Saharan Africa? The benefits and losses Introduction According to International Monetary Fund (IMF), Economic globalization is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. Globalization sometimes is referred to

    Read More

  • The Pros And Cons Of Transaction Cost Theory

    1763 Words  | 8 Pages

    There are six factors that make countries more competitive: (Porter, 1990) • National competitiveness – It refers to intensity of competitiveness with the rival countries and the area of competition, for instance governmental support, relationship with customers, etc. • Type of domestic demand – Domestic demand refers to its type of structure and level of sophistication and the availability to transfer to other competitors (countries). • Factor advantages – The advantages that a country has over competitors in raw materials, climate, education, infrastructure, telecommunication, educated workforce and research

    Read More

  • Pros And Cons Of Globalisation

    1086 Words  | 5 Pages

    REV1 (2003) Investment policy review Ghana: UNCTAD Nations New York Geneva WTO (2001) Trade Policy Reviews: First Press Release, Secretariat and Government Summaries Index Mundi (2012) Ghana Unemployment Rate: www. indexmundi.com, Ghana, economy accessed 15/02/2014 Peace fm (2009) Ghana Has Too Many Banks: www. Peaceonline.com accessed

    Read More

  • Distell Swot Analysis

    2958 Words  | 12 Pages

    .za) SWOT Analysis Strength: • Brand reputation and loyalty • World wide distribution • South African largest producer of wine, spirit, ciders and RTDS • Ranked second in the world for cider production • Broad brands and product variety • Improved production technology, innovation in products, packaging and marketing Weakness • Cost of packaging • High costs of raw materials • Intense competition means market growth is limited • Cheaper brands emerging • Failure to deliver superior product and service at competitive price points • Unavailability of grapes and apples to meet demand for wine and cider brands across the quality and cultivar spectrum Opportunities • Product extension • Expansion into other Africa countries • Growing demand for gluten free ciders • Joint venture capital • Increase popularity of premium brans • Sustainable movement • Growth in emerging markets

    Read More

More about Comparative Analysis Of Ghana

Open Document