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Unformatted text preview: duction vs. import
foods from abroad? International example (2): Outsourcing of services to
India – comparative advantage in services dependent
on high-skilled, educated, English-speaking labor force. Prof. David Lee AEM/ECON 2300 27 of Lecture 3 Comparative advantage
vs. competitive advantage Comparative advantage: Based on production costs
(e.g. opportunity costs) and factor endowments ”Competitive advantage”: (Michael Porter) Based on:
• Firm strategy and structure
• Consumer demands
• Supporting industries (agglomeration economies)
• Specialized factor conditions Prof. David Lee AEM/ECON 2300 28 of...
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- Spring '06