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Definition of

comparative advantage

Economics

benefit of higher, more efficient production an instance of higher, more efficient production in a particular area. A country that produces far more cars than another, for example, is said to have the comparative advantage in car production. It has been suggested that specialization in activities in which individuals or groups have a comparative advantage will result in gains in trade.

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Definitions of ’comparative advantage’ and meaning of ’comparative advantage’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’comparative advantage’ and other financial terms with our online QFINANCE Financial Dictionary.

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