comparative advantage
The ability to produce a good at lower cost, relative to other goods, compared to another country. In a Ricardian model, comparison is of unit labor requirements; more generally it is of relative autarky prices. With perfect competition and undistorted markets, countries tend to export goods in which they have comparative advantage. See also absolute advantage. Due to Ricardo (1815).
Browse by Subjects
absolute advantage
competitive advantage
See All Related Terms »

operational costs
size
historical cost depreciation
turn over
sovereign risk