Examples of comparative advantage in the following topics:
-
- Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry.
- Competitive advantage seeks to address some of the criticisms of comparative advantage.
- A country is said to have a comparative advantage in the production of a good (say cloth) if it can produce cloth at a lower opportunity cost than another country.
- Thus, England would have the comparative advantage in cloth production relative to Portugal if it must give up less wine to produce another unit of cloth than the amount of wine that Portugal would have to give up to produce another unit of cloth.
- The other theory, comparative advantage, can lead countries to specialize in exporting primary goods and raw materials that trap countries in low-wage economies due to terms of trade.
-
- A country in certain tropical areas of the world has a comparative advantage at growing crops like sugar or coffee beans, but it would be much less efficient at growing wheat (due to the climate).
- Comparative advantage is a concept often applied to importing and exporting.
- Comparative advantage is the concept that a country should specialize in the production and export of those goods and services that it can produce more efficiently than other goods and services, and that it should import those goods and services in which it has a comparative disadvantage.
-
- Absolute advantage and balance of trade are two important aspects of international trade that affect countries and organizations.
- Absolute advantage and balance of trade are two important aspects of international trade that affect countries and organizations .
- Adam Smith first described the principle of absolute advantage in the context of international trade, using labor as the only input.
- Since absolute advantage is determined by a simple comparison of labor productivities, it is possible for a party to have no absolute advantage in anything; in that case, according to the theory of absolute advantage, no trade will occur with the other party.
- It can be contrasted with the concept of comparative advantage, which refers to the ability to produce a particular good at a lower opportunity cost.
-
- This idea also supports the way South Korea's economy began specializing in order to capture comparative advantages and grow more competitive in the global marketplace.
- Another relationship between globalization and GDP was seen in the 1990s when developing countries had 5.0% annual growth compared to only 2.2% annual growth in economies that had been globalized for longer.
- Global exchange can allow the best of all worlds through specialization and maximizing various comparative advantages that involve quality or efficiency.
-
- Economy-wide trade creates jobs in industries that have comparative advantage and destroys jobs in industries that have a comparative disadvantage.
- It is also true that national security could be compromised by the export of certain dual-use products that, while commercial in nature, could also be used to produce products that might confer a military advantage to U.S. adversaries.
-
- This can be explained by the theory of comparative advantage.
- An export subsidy can also be used to give an advantage to a domestic producer over a foreign producer.
-
- 70%–85% of the energy obtained from the fuel in a fuel cell can be converted into power and heat compared to coal or oil, which is around 35%.
- Since fuel cells are smaller than coal-fired furnaces, less land is required to set them up as compared to traditional power plants.
-
- Sole proprietorships face a number of difficulties in the longer terms compared to limited liability companies.
- However, while there are certain advantages (it is easier to set up a sole proprietorship than a limited liability company, for instance), there are a number of big disadvantages, particularly in the long term, that make the sole proprietorship model quite unattractive to business owners.
- Growing your small business will require cash to take advantage of new markets and more opportunities.
-
- There are advantages and disadvantages to primary research.
- Compared to secondary research, primary data may be very expensive in preparing and carrying out the research.
-
- Franchising agreements are a popular way of entering international markets, and have advantages and disadvantages.
- Compared to licensing, franchising agreements tends to be longer and the franchisor offers a broader package of rights and resources which usually includes: equipments, managerial systems, operation manual, initial trainings, site approval, and all the support necessary for the franchisee to run its business in the same way it is done by the franchisor.
- Compared to other modes, such as exporting and even licensing, international franchising requires a greater financial investment to attract prospects and support and manage franchisees.
- An American art teacher named Bette Fedder took advantage of this opportunity and started a drawing school in her home.