Doctrine says that states should 1) produce and export whatever they can produce most efficiently relative to other states i.e., whatever they have a comparative advantage in; and they should 2) import those things they can't produce as efficiently from states that can
The theoretical concept developed in free market economics that because of the particular resources in different countries, such as human and physical resources, a particular country will be more efficient and therefore more competitive in the particular sector that uses that combination of resources or factors of production.
The ability of one country compared with another to produce a good at lower cost relative to other goods. Under conditions of perfect competition and undistorted markets, countries tend to export goods in which they have comparative advantage
The ability to produce a good or service at a lower opportunity cost than some other producer. This is the economic basis for specialization and trade. View Capstone Lesson(s) that address this concept
A country has a comparative advantage over another country in the production of a particular good if the cost of making this good, compared with the cost of making other goods, is lower in this country than in the other country.
Describes the ability of a person, company or country to produce a good or service at a lower cost relative to other goods and services. Even though a country may have an absolute advantage over another country, it still will be better off specializing in the good or service in which it has a comparative advantage and trading for goods and services it doesn't produce as efficiently.
A person has a comparative advantage in producing a product if he or she can produce that product at a lower opportunity cost than anyone else. A country has a comparative advantage in producing a product if it can produce that product at a lower opportunity cost than any other country.
the improvement in overall cost-effectiveness of outcomes when parties specialise in components in which they have lower opportunity costs; new comparative advantages can be developed over time and are not immutable
David Ricardo demonstrated that individual nations and the world community both perform best if they specialize in producing and exporting that which they do best, even if they lack an absolute advantage. This argument is the justification for international trade.
A component of free market theory that states that if each nation made just those things which it could produce cheaper relative to a foreign country and then trade with other nations to get that which they could produce relatively cheaper, wealth would expand and everyone would benefit.
A nation has a comparative advantage in production of a good or service if it can produce it at a lower cost, or opportunity cost, than other nations. The theory of comparative advantage holds that nations should produce and export those goods and services in which they hold a comparative advantage and import those items that other nations can produce at lower cost.
The concept, formulated by British economist David Ricardo, according to which economic agents- people, firms, countries- are most efficient when they do the things that they are best at doing. Comparative advantage is particularly important in global markets, where countries benefit most by producing and exporting goods and services that they can produce more efficiently (at a lower cost, by using less physical, human, and natural capital) than other goods and services. In particular, Ricardo showed that a country can benefit from international trade even if it has higher costs of production for all traded goods and services relative to the countries it trades with- that is, even if it has no absolute advantages whatsoever. This can be done by correctly choosing the country's international specialization in accordance with its comparative advantages. In this case, by using export earnings to import other goods and service at prices that are lower than the costs of their domestic production, the country will maximize the overall volume of national production and consumption.
The notion that because of different cultural, geographical and historical circumstances, some nations are more efficient in the production of certain goods. This concept underlies the justification of free trade.
The situation when a farm or a country produces and sells those goods and services which it can produce at relatively low cost and buys those products and services which others can produce at relatively less cost, the central concept in modern trade theory.
A central concept in international trade theory, which posits that a country or a region should specialize in the production and export of those goods and services that it can produce relatively more efficiently than other goods and services. Conversely, a country or region should import those goods and services in which it has a comparative disadvantage. The theory teaches that comparative or relative efficiency, not absolute efficiency, determines in which goods/services a country should specialize. David Ricardo first propounded this theory in 1817 as a basis for increasing economic welfare through international trade.
The ability to produce a good at a lower cost, relative to other goods, compared to another country. With perfect competition and undistorted markets, countries tend to export goods in which they have a Comparative Advantage.
the ability of a country to make and export a good relatively most efficiently; the basis for the liberal economic principle that countries benefit from free trade among nations (190) see also: capitalism
The claim that although the affirmative plan does not solve 100% of the harm area or advantage it is still better than the status quo. This argument is usually used by the affirmative if they are losing some of the solvency arguments the negative has presented.
An economic theory first put forward by David Ricardo in the early 19th century. The theory says that all countries will be better off if each of them concentrates on doing the things it does best, even if what it does second best is better than what another country does best.
The principle by which people make decisions about whether to produce products for export. In our discussion of Dulcinian sugar exports, the United States had an absolute advantage (they could produce sugar more cheaply), but the Dulcinians had a comparative advantage (US consumers would still benefit, because lands that could have been used to grow sugar could be put to more profitable alternative uses).
The idea that a country should produce goods for export based upon which resources it can access and use most cheaply. For example, Saudi Arabia has a comparative advantage in oil production, and can export its oil to pay for other goods that it wants to import. Similarly, a country with low labor costs would have a comparative advantage in labor-intensive industries, such as clothing production.
refers to the ability of a country to produce a good at a lower opportunity cost than another country. World output and consumption are maximized when each country specializes in producing and trading goods for which it has a comparative advantage.
An economic principle that nations should specialise in the areas of production in which they have the lowest opportunity cost and trade with other nations so as to maximise both nations' standard of living
When one nation's opportunity cost of producing an item is less than another nation's opportunity cost of producing that item. A good or service with which a nation has the largest absolute advantage (or smallest absolute disadvantage) is the item for which they have a comparative advantage
In economics, the theory of comparative advantage (sometimes known as "Ricardo's Law") explains why it can be beneficial for two parties (countries, regions, individuals and so on) to trade without barriers if one is more efficient at producing goods or services needed by the other. What matters is not the absolute cost of production, but rather the ratio between how easily the two countries can produce different goods. The concept is highly important in modern international trade theory.