Home >  Term: comparative advantage
comparative advantage

When one nation's opportunity cost of producing an item is less than another nation's opportunity cost of producing that item. A good or service with which a nation has the largest absolute advantage (or smallest absolute disadvantage) is the item for which they have a comparative advantage.

0 0

Penulis

  • Levi Taylor
  •  (Bronze) 316 poin
  • 100% positive feedback
© 2024 CSOFT International, Ltd.