Revealed Comparative Advantage (RCA) is an index used in international economics

Question

Revealed Comparative Advantage (RCA) is an index used in international economics for calculating the relative advantage or disadvantage of a certain country in a certain class of goods or services as evidenced by trade flows. It is based on the Ricardian comparative advantage concept. RCA of country c in product p is defined by:

If product RCAc p>= 1, the country c is said to have a comparative advantage in the

3. How many countries, excluding the World, and product groups, excluding All Products, are there in the data set?

4. Compute Revealed Comparative Advantage (RCA) of the Malawi in all product groups. Which product groups does the Malawi have comparative advantage in? Why do you think this is?

5. Compute RCA of all countries in the Textiles and Clothing product group. Which countries have a revealed comparative advantage in Textile and Clothing? Which country has the highest RCA and why do you think this country has the highest RCA?

6. Compute the RCA of all countries in the Chemical product group. Which countries have a revealed comparative advantage in Chemicals? Why do you think these countries have this revealed comparative advantage?

C. 1 Product GlWorld US 2 All Produ 1.82E+10 1.5E+09 4.66E+08 1.33E+09 6.25E+08 3.81E+08 2.27E+09 2.64E+08 31734162 58648083 1080101 3 Raw mate 1.78E+091.36E+08 30536657 354627268267292 39630299 38023951 21825396 823791.4 4010365 599798.9 4 Anima 3.42E+08 257031476449673 20647853 1584807 3663223 17356891 9358368 462572.8 580453.5 5750.94 5 |Chemicals 1.74E-09 1.6LE+08 69619235 1.63E+08 46913612 10468469 1.-0832722032 101246.2 1204242 2433446 6 Food Prod 5.96E+08 45066873 19154299 39493529 2978767 10694996 27911218 5672447 244825.1 1897423, 5509301 7 Footwear 1.65E+08 1934197 25057395687602 169197.4 752077.2 68210437 3114304 787292.4 139768.8 2144.25 8 Fuels 9 Hides and 1.33E+08 5404756 1784787 3384417 246609.7 754218.8 35038666 3524423 592245.8 531538.2 5666.85 10 Mach and 4.67E+09 3.67E+08 92873567 3.47E+08 2.06E+08 1.4E+08 9.57E+08 21165337 230773.9 34175102 42969.44 11|Metals 1.18E+09 6867944123046886 958033605347670515521570 .77E+0821239363 94994.99 2066763 6409.42 12 Minerals 1.96E+08 9489882 880039.7 2424072 905266.44542026 3815158 2443746 9939.28 1662265 670.24 13 Plastic or 7.76E+08 74344870 14494259 70038398 32833846 10933851 86355113 7421978 101905.6 884390.9 37005.94 14 Stone and 8.9E+08 69475989 57769991 25129564 16703006 10747883 85553704 41417644 43463.66 722508.8 7354.21 15 Textiles al 8.08E+08 24966498 12637305 29841663 7835576 6818351 2.73E+08 37161711 283325671661194 35447.36 16 Transport 2.02E+09 1.47E+08 70640885 2.94E+08 1.52E+08 95267733 1.07E+08 22013905 166043 3545189 18942.72 17 Vegetable 5.7E+08 67976108 4110933 16865100 855573.4 12261572 22950322 16753805 200448.4 2331947 180495.6 18 Wood 4.21E+08 39068638 8639914 33436054 5383124 2957683 40190571 1861800 49418.83 3160649 15331.13 UK iTy lpMcxicx) Chi lk Philippi Makri 1.74E+09 1.04E+08 32747577 28347256 11380089 22508865 27903740 31393703 178120.9 774562.9 217.72

Explanation / Answer

Answer
e
the consumer purchases goods from other countries because they get more utility.
Also, the trade decreases prices and increases competition so the consumer becomes better off because of trade

Q2
Option d
the lower opportunity cost good is produced in a country and the higher one is in another country.

Q3
option e
the lower input cost means more production in absolute terms

Q4

Option b
Comparative advantage where goods produced which has lower opportunity costs

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