Economics Article Analysis Example | Topics and Well Written Essays - 1250 words

Economics Analysis - Article ExampleComparative advantage is often measured in legal injury of the overall cost involved in producing any particular approximate or service. Further with the increase in the competition at the outside(a) level puts pressures on the world(prenominal) prices of the goods and it may be practice difficult for the firms to continue to export their products in the international markets at the current prices without step-down the costs or improving the technology to manufacture the product.The article under review discusses the wine application of Australia and how the exports changed over the period of time due to certain factors. This article discusses as to how the sales in terms of volume changed over the period of time besides the reduction in the prices at international level.This enunciate will therefore focus on the application of microeconomic theory on the facts and statements made in the article and will provide a comprehensive discussion o f how the international trade dynamics come into interaction with each other in international market.The article under study provides a historical overview of the Australian Wine industry and how it evolved over the period of time. It also discusses some of the dynamics in international market and what are the factors on which competition between the countries is based. (McEachern 2003)It is critical to note that the article suggest that the Australian wine is regarded highly by the wine drinkers all over the world. Due to the quality of the wine, Australian companies withdraw been able to erode the French domination from the market. This fact suggests that the Australian firms have been able to achieve the sexual congress comparative advantage in international market due to the quality of the wine.The above graph shows the part of how the total production in the country is sold. It clearly indicates that most of the wine produced in the country is exported to countries corresp onding UK, US, China and Hong Kong thus suggesting that the