Trade تجارة

Comparative advantage is based on the theory of David Ricardo (1772-1823), which assumes that the patterns of specialization in the production of goods and trade between countries are governed by relative differences in productivity. Comparative advantage can be formulated in terms of the relatively lower opportunity cost. It is measured by what must be given up in the production of one good using the same resource. The greater the difference between the opportunity costs of producing in the two countries, the greater the comparative advantage of that product or service where the relative cost is the lowest.
Whatever the basis of comparative advantage, countries benefit from specialization in production and international trade even though they do not have an absolute advantage in the production of any particular commodity. As a reminder, specialization according to the absolute advantage, if a country produces more efficiently or at a lower cost compared to other countries, goes back to the theory of Adam Smith (1723-1790).
To identify and evaluate these differences, studies use commercial data to calculate the comparative advantage (or advantages) and therefore it is called the revealed comparative advantage. The indicator therefore reveals patterns of specialization in relation to goods or services (ie products). The first researcher to measure revealed comparative advantage was Liesner (1958), then Bela Balassa (1928-1991) introduced the concept of exposed comparative advantage in 1965. RCA Country Index. If the RCA (revealed Comparative Advantage) is greater than 1, this means that the country or region has a comparative advantage in exporting the product in relation to other regions or countries.