Comparative advantage
What Comparative advantage means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Comparative advantage
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
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Reference: Pearson Edexcel
A country has this when it can produce goods at a lower opportunity cost than other nations, which drives specialisation.
Producing goods at a lower opportunity cost, which is the basis for specialisation and trade.
Topics that use Comparative advantage
- International trade (Pearson Edexcel A-Level)
- Trade and growth (Pearson Edexcel A-Level)
Related terms
- Economic growth
- Economic vulnerability
- Foreign direct investment (FDI)
- International trade
- Opportunity cost
- Over-specialisation
- Resource allocation
- Specialisation
Using Comparative advantage in the exam
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