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Business basics: what is comparative advantage?

  • Written by Martin Richardson, Professor, Australian National University
Business basics: what is comparative advantage?Paul Teysen/Unsplash

For the best part of two centuries, the principle of “comparative advantage” has been a foundation stone of economists’ understanding of international trade, both of why it occurs in the first place and how it can be mutually beneficial to participants.

Business basics: what is comparative advantage?Different countries specialise in the production of...

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