[{"data":1,"prerenderedAt":53},["ShallowReactive",2],{"term:comparative-advantage":3},{"term":4,"related":44},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":37,"stem":38,"takeaways":39,"__hash__":43},"terms\u002Fterms\u002Fcomparative-advantage.md","Comparative Advantage",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-comparative-advantage","Understanding Comparative Advantage",[16,17,18],"p",{},"Comparative advantage, explained by David Ricardo in 1817, shows why trade benefits both sides even when one is better at producing everything. What matters is not absolute skill but what each producer gives up.",[16,20,21],{},"By specializing in what they give up least to make, and trading for the rest, countries and people can consume more than they could alone.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","The ability to produce something at a lower opportunity cost than others.","md",[],{},true,"\u002Fterms\u002Fcomparative-advantage",[35,36],"opportunity-cost","trade-deficit",{"title":6,"description":28},"terms\u002Fcomparative-advantage",[40,41,42],"Comparative advantage is about lower opportunity cost, not being best.","It explains why specialization and trade raise total output.","Gains from trade can still create losers in some industries.","sgaVbxGFusISapyJMIp3mT9Z3Ow-KNLW5yX4aybeTpM",[45,49],{"title":46,"description":47,"path":48},"Opportunity Cost","The value of the next-best alternative you give up when you make a choice.","\u002Fterms\u002Fopportunity-cost",{"title":50,"description":51,"path":52},"Trade Deficit","When a country imports more goods and services than it exports.","\u002Fterms\u002Ftrade-deficit",1793374004758]