Comparative Advantage

The ability to produce goods and services at a lower opportunity cost than that of trade partners. If  someone  has  a  lower  opportunity  cost of  producing  a  given  service,  that  person  enjoys  a comparative advantage in  the production  of  that  service. 

International Trade: Absolute and Comparative Advantage

A video outlining comparative advantage and how it compares to absolute advantage.

Why Do Countries Trade?

Quick recap on the main economic justifications/reasons for countries to trade with one another for greater economic prosperity.

Sources of Comparative Advantage

What generates comparative advantage? We look briefly at geography, factor proportions, increasing returns to scale and institutions such as labor market flexibility.

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