What is the difference between absolute and comparative advantage?

Difference between absolute and comparative advantage:

• Absolute advantage arises while a country or region can create more of a product with the same factor inputs.

• Comparative advantage exists while a country has lower opportunity cost into a good or service production.

Posted Date: 8/27/2013 7:26:30 AM | Location : United States

Ask an Expert

Related Discussions:- Difference between absolute and comparative advantage, Assignment Help, Ask Question on Difference between absolute and comparative advantage, Get Answer, Expert's Help, Difference between absolute and comparative advantage Discussions

Write discussion on Difference between absolute and comparative advantage
Your posts are moderated

Write your message here..

Related Questions

21st century paradigm competencies, cn i get an example of it cn i get an example of it

Is migration a problem, Is migration a problem? Huge scale rural-to-ur... Is migration a problem? Huge scale rural-to-urban migration places a strain onto city economic systems. As like some examples of: • There is inadequate demand for labour to

What is structural change, What is structural change? Structural chan... What is structural change? Structural change: Structural change arises while the associate share of GDP and employment accounted for through the primary, secondary and te

Define the process of setting objectives, Define the process of setting obj... Define the process of setting objectives. What might be objectives for a newly appointed junior programmer? A hierarchy of objectives cascades down through the overall intend o

Production possiblities curve, 1. Imagine that two countries, Richland and ... 1. Imagine that two countries, Richland and Poorland can produce just two goods, computers and coal. Assume that for a given amount of land and capital, the output of these two pro

What are the limitations of balanced growth, What are the limitations of ba... What are the limitations of balanced growth? The limitations of balanced growth: • The strategy of balanced growth is away from the resources of most poor countries; • Go

The causes and persistence of inflation, QUESTION (a) Analyse the activ... QUESTION (a) Analyse the activist and non-activist policy makers' choice between implementing a policy rule or a discretionary monetary policy. (b) Explain why the policy ru

Household sector, The prevention of main swings in economic activity can be... The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?

Draw a supply or demand diagram, Draw a Supply or Demand Diagram A) Supp... Draw a Supply or Demand Diagram A) Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due  largely to increases in the price of energy and food

Define business environment, Problem: (a) Define ‘Business Environment'... Problem: (a) Define ‘Business Environment'. (b) Briefly distinguish between internal and external environments of business. (c) Discuss on the key components of the gener