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Dynamic comparative advantage |
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Dynamic comparative advantageA changing pattern of comparative advantage over time due to changes in factor endowments or technology.Similar MatchesRevealed comparative advantageRevealed comparative advantageBalassa's (1965) measure of relative export performance by country and industry, defined as a country's share of world exports of a good divided by its share of total world exports. The index for country i good j is RCAij = 100(Xij /Xwj)/(Xit /Xwt) where Xab is exports by country a (w=world) of good b (t=total for all goods). Comparative advantageComparative 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). Law of Comparative AdvantageLaw of Comparative AdvantageThe principle that, given the freedom to respond to market forces, countries will tend to export goods for which they have comparative advantage and import goods for which they have comparative disadvantage, and that they will experience gains from trade by doing so. Idea due to Ricardo (1815). 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. Further SuggestionsKaleidoscope comparative advantageComparative advantage Chain of comparative advantage Comparative market analysis |
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