|
|
Absolute advantage |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Absolute advantageThe ability to produce a good at lower cost, in terms of real resources, than another country. In a Ricardian model, cost is in term of only labor. Absolute advantage is neither necessary nor sufficient for a country to export a good. See comparative advantage.Absolute advantageA person, company or country has an absolute advantage if its output per unit of input of all goods and services produced is higher than that of another person, company or country.Absolute advantage Similar MatchesLocation specific advantagesLocation specific advantagesAdvantages (natural and created) that are available only or primarily in a particular place. Distribution Cost AdvantageDistribution Cost AdvantageA source of competitive advantage that depends on the efficient delivery of a product or service to customers. Production Cost AdvantageProduction Cost AdvantageA source of competitive advantage that depends on producing some product or service at the lowest cost. Net advantage of refundingNet advantage of refundingThe net present value of the savings from a refunding. Chain of comparative advantageChain of comparative advantageA ranking of goods or countries in order of comparative advantage. With two countries and many goods, goods can be ranked by comparative advantage (e.g., by relative unit labor requirements in the Ricardian model). A country's exports will then lie nearer one end of the chain than its imports. With two goods, many countries can be ordered similarly. Further SuggestionsYield advantageLocational advantage Comparative advantage Comparative advantage Kaleidoscope comparative advantage First mover advantage Revealed comparative advantage Cost advantage Dynamic comparative advantage Net advantage to leasing Advantage Net advantage to merging Competitive advantage Law of Comparative Advantage |
|
|
|