Author: Fin12

Efficiency in Production Specialization of countries or individuals on the basis of their comparative advantage can help in the better allocation of resources. For example, if one country is relatively...... Read More

Why is Comparative Advantage Important? The principle of comparative advantage explains why specialization and trade lead to a more efficient allocation of resources and higher global welfare. There are several...... Read More

• Opportunity cost : The cost, in a particular choice, of giving up the next best alternative. • Specialization: When the producer specializes in producing the good or service for...... Read More

. Overview of Comparative Advantage The concept of comparative advantage was discovered by British economist David Ricardo in 1817. He remains a central figure in modern trade theory. It basically...... Read More

Comparative Advantage - Overview, Example, Benefits and vs. Absolute Advantage Comparative advantage is one of the core principles in economics that helps explain the basis for trade and specialization. It...... Read More