Absolute advantage


 

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Absolute advantage

The 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 advantage

A 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 Matches

Location specific advantages

Location specific advantages

Advantages (natural and created) that are available only or primarily in a particular place.


Distribution Cost Advantage

Distribution Cost Advantage

A source of competitive advantage that depends on the efficient delivery of a product or service to customers.


Production Cost Advantage

Production Cost Advantage

A source of competitive advantage that depends on producing some product or service at the lowest cost.


Net advantage of refunding

Net advantage of refunding

The net present value of the savings from a refunding.


Chain of comparative advantage

Chain of comparative advantage

A 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 Suggestions

Yield advantage
Locational 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


 
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