Definition of Comparative advantage
the ability of an individual or group to carry out a particular economic activity such as making a specific product more efficiently than another activity
Examples of Comparative advantage in a sentence
It is a comparative advantage for countries like Iceland who have a large supply of fish to export seafood. 🔊
A country should always analyze their natural resources and use them to gain a comparative advantage over countries with a limited supply. 🔊
In South America it’s a comparative advantage to harvest bananas, mangoes, and other tropical fruits and sell them to the United States for a high price. 🔊
Many American businesses produce their electronics in other countries, like China, for the comparative advantage of cheaper parts. 🔊
Countries like India use their comparative advantage of rich fabrics and textiles to trade with other countries for money and scarce goods. 🔊
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