COURSE : INTERNATIONAL BUSINESS

COURSE CODE : BMT1035

DIGITAL ASSIGNMENT
By
PRASANTH K (20BBA0142)

TOPIC:

Write examples of absolute advantage using local businesses or any

entrepreneurs in your area. Give three examples.

SUBMITTED TO : NAGA VENKATA RAGHURAM ,

ASSISTANT PROFESSOR GRADE 2,
VITBS
ABSOLUTE ADVANTAGE:-

Absolute advantage is the ability of an individual, company, region, or country to produce a

greater quantity of a good or service with the same quantity of inputs per unit of time, or to
produce the same quantity of a good or service per unit of time using a lesser quantity of
inputs, than its competitors.

Grocery business: ( Annai stores, Kandhan stores)

 Two Grocery stores namely Annai stores and Kandhan stores, enable consumers to
purchase products on their shop.

 Annai stores offers free home delivery to the customers in our same town, and it has 2
godown in our town along with 50 employees to deliver packages to the customers'
doorsteps.

 Kandhan stores has only one godown in our town and only 30 employees, so it
delivers purchased grocery products somewhat late comparing to Annai stores.

 Both Annai and Kandhan stores sell the same grocery products at the same prices.

 However, Annai stores has an absolute advantage over Kandhan stores because it can
service customers more quickly.

Furniture business: (Sri Ganapathy Furniture, Sujatha wooden works)

 Two furniture stores in our town design and create handmade wooden furniture,
including tables, chairs and dressers.

 In Sri Ganapathy Furniture, it typically takes the employees 12 hours to craft each
new piece, whereas in Sujatha wooden works furniture also sells same modeled
wooden furniture at the same size and price, but it only takes their employees six
hours to fulfill customers' orders.

 The quicker production time allows Sujatha wooden works an absolute advantage
over Sri Ganapathy Furniture.
Flower business: (absolute advantage between two towns namely Gudiyattam and
ambur)

 During the spring season, a white flower blooms in Ambur town in our district.

 The flower is a popular choice for decorations for spring weddings, but it only grows
only in Ambur of our district.

 Florists from Ambur have to import the flowers to Gudiyattam, which is a lengthy
process to fulfill client’s orders in Gudiyattam.

 The florists in the Ambur have an absolute advantage over Gudiyattam because
they're in closer proximity to the flowers, making it easier to provide them to their
clients.
THANKING
YOU