Reference Entry

comparative advantage

Alisdair Rogers, Noel Castree and Rob Kitchin

in A Dictionary of Human Geography

Published in print January 2013 | ISBN: 9780199599868
Published online September 2013 | e-ISBN: 9780191758065
comparative advantage

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A concept used by economists and economic geographers that describes the relative cost advantages of producing certain goods and services for overseas trade. For instance, if two countries can both produce corn and laptop computers, it may not make economic sense for both of them to produce these commodities for their domestic markets. Instead, it may be relatively cheaper for one to specialize in corn and the other in laptops and trade them for the income required to purchase the other. When this logic is applied to a range of goods and services it means that if pure economic rationality prevailed, countries would specialize in producing and exporting a select range of commodities at any given point in their development. In development geography, the ...

Reference Entry.  179 words. 

Subjects: Human Geography

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