What is the meaning of Comparative Advantage?

Comparative Advantage refers to the relative advantage between trading parties. It explains why transactions occur even in the absence of absolute advantage. The basis for trade, specialization, and swap transactions.

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APABarry Goldsmith. (2010). comparative advantage. Retrieved September 21, 2026, from http://smartdefine.org/comparative_advantage/definitions/1150358
ChicagoBarry Goldsmith. 2010. "comparative advantage" http://smartdefine.org/comparative_advantage/definitions/1150358 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, comparative advantage, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/comparative_advantage/definitions/1150358>.
MLABarry Goldsmith. "comparative advantage" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/comparative_advantage/definitions/1150358>