Question

What is comparative advantage?​

Answer 1

Ответ:

Порівняльна перевага — це здатність країною виробляти товари й послуги із нижчою альтернативною вартістю, ніж в іншій країні. Не завжди абсолютна перевага є необхідною умовою для розвитку міжнародної торгівлі.

Англійська мова

A comparative advantage is a country's ability to produce goods and services at a lower opportunity cost than in another country. Absolute advantage is not always a necessary condition for the development of international trade.

Answer 2

Comparative advantage is an economic principle that describes the ability of a country, individual, or entity to produce a particular good or service at a lower opportunity cost relative to another. In simpler terms, it's the advantage that one entity has over another in terms of producing a specific good or service more efficiently or at a lower relative cost.

The concept of comparative advantage is often used in international trade theory to illustrate why it's beneficial for countries to specialize in producing goods or services they can produce more efficiently compared to others. This specialization and trade based on comparative advantage can lead to increased overall production and efficiency in the global economy.

The key point of comparative advantage is that even if one country is more efficient in producing all goods or services compared to another country, it is still beneficial for both countries to specialize in and trade the goods or services they can produce relatively more efficiently. This leads to a more efficient allocation of resources and greater overall production.

It's important to note that comparative advantage is based on relative efficiency rather than absolute efficiency. It emphasizes the opportunity cost of producing one good or service over another, considering the trade-offs involved in resource allocation.