comparative advantage

comparative advantage
Theory suggesting that specialization by countries can increase worldwide production. Bloomberg Financial Dictionary

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comparative advantage comparative advantage advantage

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comparative advantage UK US noun ECONOMICS
[C] an advantage a country has over another country because it can produce a particular type of product more efficiently: »

Russia's comparative advantage is in the export of raw materials.

comparative advantage in sth »

The United States has a comparative advantage in providing financial services to the rest of the world.

[U] the idea that countries should only export the goods that they are able to produce more efficiently than other countries and import the goods that other countries are able to produce more efficiently than them: »

When David Ricardo expounded the theory of comparative advantage, he chose the examples of wine and cloth.

Compare ABSOLUTE ADVANTAGE(Cf. ↑absolute advantage)

Financial and business terms. 2012.

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Look at other dictionaries:

  • Comparative advantage — Economics …   Wikipedia

  • Comparative Advantage —    The idea of “comparative advantage” is a principal component of the doctrine of free trade; it was articulated most coherently in The Principles of Political Economy, published in 1819 by the economist David Ricardo. Developing ideas on… …   Encyclopedia of the Age of Imperialism, 1800–1914

  • comparative advantage — Economic theory first advanced by Robert Torrens and David Ricardo that analyzes international trade in terms of differences in relative opportunity costs. The theory suggests that countries should specialize in the goods they can produce most… …   Universalium

  • Comparative Advantage — A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor. Let s break this down into a simple example. Suppose that two firms both produce two main products: ice cream and… …   Investment dictionary

  • comparative advantage — The relative efficiency in a particular economic activity of an individual or group of individuals over another economic activity, compared to another individual or group. One of the fundamental propositions of economics is that if individuals or …   Accounting dictionary

  • comparative advantage — santykinis pranašumas statusas T sritis Politika apibrėžtis Valstybės ekonomikos gebėjimas efektyviau negu kitose šalyse gaminti prekes ar teikti kitas paslaugas. Kertinė laisvos tarptautinės prekybos pagrindimo koncepcija, ją suformulavo britų… …   Politikos mokslų enciklopedinis žodynas

  • comparative advantage — noun : the advantage enjoyed by a person or country in the cost ratio of one commodity to another in comparison with the ratio of costs of these same commodities elsewhere …   Useful english dictionary

  • comparative advantage —   the idea that areas tend to be more efficient in certain economic activities than others and so should specialise in them in order to maximize their quality of life through trade …   Geography glossary

  • comparative advantage — relative benefit, something which is beneficial when compared to the other options …   English contemporary dictionary

  • comparative advantage — noun Economics the ability of an individual or group to carry out a particular economic activity more efficiently than another activity …   English new terms dictionary

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