Discussion Paper of the Institute for Organisational Economics 4/2023

Ein ganzes Land kann nicht komparativ überlegen sein
Alexander Dilger
April 2023

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Abstract

A Whole Country Cannot Be Comparatively Superior

On an erroneous example, it is shown that a country cannot be comparatively superior to another country in every product. Absolute cost advantages are possible for all products, but the less productive country usually also has at least one comparative cost advantage and should then concentrate on the production of the corresponding good. Only if the input ratio of the production factors is the same for all goods and countries, does no country have a comparative cost advantage and international trade is not worthwhile.