Comparative Advantage Calculator

Calculate Comparative Advantage and Opportunity Cost in international trade. Identify product specializations and trade gains.

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How to Use Comparative Advantage & Trade Calculator

  1. Enter Country A output per hour for Good X and Good Y.
  2. Enter Country B output per hour for Good X and Good Y.
  3. View comparative opportunity costs and specialization recommendations.

Ricardian Theory of Comparative Advantage

Even if one country has an absolute advantage in all goods, both nations gain from trade by specializing in goods where they have lowest opportunity cost.

Frequently Asked Questions

What is Comparative Advantage?
A country has a comparative advantage if it can produce a good at a lower opportunity cost than another country.