Comparative advantage is the ability of one country to produce a particular product or service at a lower opportunity cost than its trading partners.

Learn about comparative advantage, and how it is an economic law that is foundation for free-trade arguments.

Specialization isn't merely about cost but also about expertise built through years of labor training and industrial ...

Once green technology processes can make use of less-skilled labor, production will migrate to countries with less expensive labor.

Examples of Comparative Advantage Proximity to natural resources. Having abundant natural resources close by and readily available can be a significant comparative advantage.

Current examples include the Future Made in Australia proposals and the US Inflation Reduction Act. Why is comparative advantage relevant to these discussions?

For example, it is precisely the notion of comparative advantage which exacerbates and helps sustain child labor. Allow me to explain: In India there are between 60 and 115 million working children.

In The Wall Street Journal, Ben Wattenberg writes that immigrants help vitalize the American economy and maintain our traditions of hard work and patriotism.

There are other errors though. For example, logistics--this is simply the claim that transport is cheaper these days. Quite why this should mean that comparative advantage no longer exists is a ...

That is, Ricardo on trade and comparative advantage might be 200 years old today but it's all still entirely relevant. And thus, of course, we really should get to grips with the only logically ...

I find that people constantly make this mistake in the workplace where "comparative advantage" has become the sort of thing people mouth to sound smarter than they are.

David Ricardo’s theory of comparative advantage states that each country has a comparative advantage in those goods and services for which its cost-adjusted productivity is highest relative to ...