Theory of Comparative Advantage Notes: Definitions & Explanations PDF | Download eBooks
Study Theory of Comparative Advantage lecture notes PDF with supply chain management definitions and explanation to study “What is Theory of Comparative Advantage?”. Study theory of comparative advantage explanation with SCM terms to review supply chain management course for online MBA programs.
Theory of Comparative Advantage Definition:
A theory which states that countries benefit from specializing in (and exporting) goods and services in which they have relative advantage, and they benefit from importing goods and services in which they have a relative disadvantage.
Operations Management: Sustainability and Supply Chain Management by Jay Heizer, Barry Render, Chuck Munson
Theory of Comparative Advantage Notes:
It occurs when one country have lower opportunity cost by manufacturing goods and services over other countries. Countries produce cheaper goods as compare to other ones. This gives advantage to them by increasing their economic welfare. Countries can take benefit from one another by importing cheap goods with greater efficiency.
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