The IT Law Wiki

Comparative advantage

32,077pages on
this wiki
Add New Page
Add New Page Talk0

Definition Edit

A country is said to have a comparative advantage in the production of a good or service if it can produce that good or service at a lower opportunity cost than another country.

This concept should be distinguished from "absolute advantage," which reflects the quantity of productive resources that must be used, rather than what other goods or services must be given up by using those productive resources to make something else.

Also on Fandom

Random Wiki