absolute cost advantage

Related Overviews


'absolute cost advantage' can also refer to...


More Like This

Show all results sharing this subject:

  • Business and Management


Show Summary Details

Quick Reference

The cost advantage enjoyed by a country in producing certain goods, compared to costs in other countries. The costs of producing similar products vary between different countries because certain resources, such as labour, raw materials, and energy, will be cheaper in some countries than in others. Multinational enterprises are able to take advantage of these cost differences by buying components or products from countries that have these advantages. Compare competitive advantage.

Subjects: Business and Management.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.