Fandom

The IT Law Wiki

Comparative advantage

32,169pages on
this wiki
Add New Page
Talk0 Share

Ad blocker interference detected!


Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.

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