As an Amazon Associate I earn from qualifying purchases.

What is Theory of Comparative Advantage in Supply Chain Management? PDF | Download eBooks

Learn Theory of Comparative Advantage definition in supply chain management with 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 Explanation

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.

Keep Learning Supply Chain Management Explanations

What is Aggregate Plan?

Total arranging is a promoting movement that completes a total arrangement for the creation procedure, ahead of time of 6 ...

What is Computer Numerical Control (CNC)?

PC Numerical control is the mechanized control of machining apparatuses and 3D printers by methods for a PC. A NC ...

What is Evidence-Based Problem Solving?

Evidence based critical thinking is a way to deal with critical thinking which has be connected to a wide scope ...

What is Virtual Operation?

A virtual business leads all or the majority of its business by means of the web and does not have ...

What is Activity?

An action is a solitary, centered thing that the client can do. The doing of something, or something that you ...

What is Life-Cycle Analysis?

Life-cycle appraisal, otherwise called life-cycle examination, Eco balance, and support to-grave investigation) is a strategy to evaluate natural effects related ...