FT MarketWatch

Comparative advantage

The name for the ability of one business entity to engage in production at a lower opportunity cost than another entity. Comparative advantage, rather than Absolute advantage, is useful in determining what should be produced and what should be acquired though Trade.

Related Terms: 8 Absolute advantage, Comparative advantage, Low, Owe, PPO, Term, Trade, Unit
Other Related Pages: Category: Economy Starting With: C
Additional Related Terms: 10-Q, 52-week low, Accelerated Cost Recovery System, Acquisition cost, Allowance for depreciation, Annuity unit, Above par, Accrual of discount, Amortization of premium, At par