Comparative advantage
Comparative advantage
Globalisation terms
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Glossaries
Definition of comparative advantage
Comparative advantage: Even if a country is more efficient than another in manufacturing two goods say A and B, it should manufacture the item where its relative efficiency is higher and leave it to the other country to manufacture the other item. The two countries can then trade with each other. By focussing on the product, where each country's relative efficiency is higher, the total production can be maximised and the costs lowered.
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Globalisation terms glossary
globalisation glossary index of terms
Definition and meaning of comparative advantage
Meaning of comparative advantage
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