Comparative Advantage in the United States

Comparative Advantage in the International Business Landscape

Definition of Comparative Advantage in the context of U.S. international business and public trade policy: A general principle explaining the condition under which mutually profitable trade between two economic regions can occur.

Comparative Advantage in the International Business Landscape

Definition of Comparative Advantage in the context of U.S. international business and public trade policy: Relative efficiency in production of a particular product or class of goods. Trade theory holds that a country should export those goods in which it has the greatest comparative advantage and import those goods in which it has the greatest comparative disadvantage, regardless of its general level of productivity or its overall labor costs relative to other countries.

Comparative Advantage in the International Business Landscape

Definition of Comparative Advantage in the context of U.S. international business and public trade policy: The theory that countries should specialize in the production of goods and services they can produce most efficiently. A country is said to have a comparative advantage in the production of such goods and services.

Theory of Comparative Advantage in the International Business Landscape

Definition of Theory of Comparative Advantage in the context of U.S. international business and public trade policy: Theory stating that trade between countries occurs when one country is relatively more productive than others in the production of a good.

Concept of Comparative Advantage

In the U.S., in the context of Political Economy and Public Policy, Comparative Advantage has the following meaning: The ability of a country or a company to produce a good or service at a lower cost than other countries or companies. (Source of this definition of Comparative Advantage : University of Texas)

Comparative Advantage

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See Also

• Political Economy
• Public Policy