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A comparative advantage exists when a firm can deliver the same benefits as other company's but at a lower cost" (Wang, Ling, & Chei, 2011). It occurs when a business creates qualities, allowing them to outperform others who compete against them. Two products that are the United States comparative advantages are agriculture and household appliances. Two comparative advantages for China are heavy goods in nearby markets and lighter products in further markets. For example, for the Dominican Republic of Congo, two competitive advantages are coffee and copper.
Factors that can prevent a country from achieving the benefits from their comparative advantage include the resources a country uses and the technology and the cost of transporting the goods and the government.
The economic growth and comparative advantages validates that the world's largest countries, United States and China have a long and complicated relationship with regard to imports and exports. Although these countries lead the pack, they are not alone in their resources. The Democratic of Congo and Saudi Arabia are both rich with natural resources such as oils and minerals, ultimately the remainder of the world depends heavily on these resources and therefore these socially disadvantaged and politically challenged countries remain relevant with regard to trade as seen in their growing GDP and related export numbers.
Each country's economic life stage is a direct reflection of the political temperature; politics effects trade, economic policies and essentially culture. The United States, China, Saudi Arabia and Democratic of Congo each has comparative advantages over other entities. There are factors that can stop a country from keeping their comparative advantages, however each country is known to be fully aware of their specific advantage and understands what it takes to remain a benefit to others.
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