Evaluate marginal opportunity costs of production and

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online