Economics Comparative Advantage Questions
Revealed comparative advantage is a concept in economics that measures a country's relative advantage in producing a particular good or service based on its actual trade patterns. It is determined by comparing a country's share of exports in a specific product to its share of total world exports. If a country has a higher share of exports in a particular product compared to its overall share of world exports, it is said to have a revealed comparative advantage in that product. This indicates that the country is relatively more efficient in producing and exporting that product compared to other countries. Revealed comparative advantage is often used to identify a country's specialization and guide its trade policies.