COMPARATIVE ADVANTAGE


Meaning of COMPARATIVE ADVANTAGE in English

Economic theory first advanced by Robert Torrens and David Ricardo that analyzes international trade in terms of differences in relative opportunity cost s.

The theory suggests that countries should specialize in the goods they can produce most efficiently rather than trying for self-sufficiency and argues strongly in favour of free international trade.

Britannica Concise Encyclopedia.      Краткая энциклопедия Британика.