Definition of comparative advantage in US English:

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.

    • ‘The benefits of globalization include the growth-enhancing ability of countries to tap their comparative advantages, the expansion of our export markets, and the price savings associated with imports.’
    • ‘What they need instead is an open marketplace in which to compete using their comparative advantage.’
    • ‘A few years later he attacked the comparative advantage rationale for free trade.’
    • ‘I believe economies grow when there is a need for them to grow and not because of the existence of some comparative advantages in the geographical area occupied by a particular economy.’
    • ‘In contrast to the communist Utopia of Plato's Republic, Aristotle provides a comprehensive list of the comparative advantages of private property in Politics.’
    • ‘Rachid warned that African countries must not focus on the few products in which individual states enjoy a comparative advantage.’
    • ‘It now makes sense for the various parts of Indonesia to work together as an economic entity, employing comparative advantages to mutual benefit.’
    • ‘More cutbacks are inevitable as steel production shifts to other countries and the US finds its comparative advantage elsewhere.’
    • ‘Cambodia thus has to look to distant shores where its products have comparative advantages, such as the markets of the United States, the European Union, Japan and South Korea, he said.’
    • ‘This is because the underlying premise of globalization is that it maximizes comparative advantages and therefore produces goods and services at the lowest cost.’
    • ‘The idea of this approach is that because of social practices, institutional complementalities develop within a nation-state that create comparative advantages in certain activities and products.’
    • ‘Socialism has a comparative advantage in the area of productive efficiency.’
    • ‘The competition for the export markets, which comes with a myriad of considerations including competitiveness, comparative advantages, economies of scale, capacity and standards is a cut-throat battle.’
    • ‘Countries would focus on the factors of production where they enjoyed the greatest comparative advantage.’
    • ‘Business economists have a strong comparative advantage in analyzing how such events are likely to affect their employers.’
    • ‘He discusses the nature of secession and its comparative advantages as compared to other forms of political reform.’
    • ‘The developing world probably does enjoy a comparative advantage in the production of certain agricultural goods.’
    • ‘Finally, the concepts of competitiveness and revealed comparative advantages, which are essential to the evaluation of sustainable growth, are discussed.’
    • ‘It's one thing for workers in older industries such as steel and textiles to lose out to the comparative advantages of overseas competition.’
    • ‘However, this massive intervention does not make Ricardo's principle invalid, it only tells us that if there are no comparative advantages, free trade is the solution.’