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Comparative advantage |
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Comparative advantageThe ability to produce a good at lower cost, relative to other goods, compared to another country. In a Ricardian model, comparison is of unit labor requirements; more generally it is of relative autarky prices. With perfect competition and undistorted markets, countries tend to export goods in which they have comparative advantage. See also absolute advantage. Due to Ricardo (1815).Comparative advantageTheory suggesting that specialization by countries can increase worldwide production.Comparative advantage Similar MatchesKaleidoscope comparative advantageKaleidoscope comparative advantageA variant of fragmentation due to Bhagwati and Dehejia (1994). Dynamic comparative advantageDynamic comparative advantageA changing pattern of comparative advantage over time due to changes in factor endowments or technology. Comparative staticComparative staticRefers to a comparison of two equilibria from a static model, usually differing by the effects of a single small change in an exogenous variable. Comparative credit analysisComparative credit analysisComparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target. Comparative market analysisComparative market analysisAn estimate of the value of a property based on an analysis of sales of properties with similar characteristics. Further SuggestionsRevealed comparative advantageChain of comparative advantage Law of Comparative Advantage |
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