Comparative Advantage
Comparative Advantage
International trade is based on comparative advantage: producing a good at a lower opportunity cost than another country. This differs from absolute advantage, which means producing more output from the same resources.
Step-by-step lessons on AQA A Level Economics 2.6.2 Trade. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.