Absolute Advantage and Comparative Advantage (with examples) | International Business
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- Опубліковано 25 тра 2021
- The United States is one of the wealthiest nations in the world, yet we continue to trade with other countries. Have you ever wondered why this is the case? If the U.S. is so powerful, then how does it benefit from international trade? To answer this question, we need to understand two important terms in the international business field: the absolute advantage and the comparative advantage.
Comparative and absolute advantage has always been a struggle point for me, vaguely understanding the concept but not being able to fully grasp it. Diving into comparative advantage, the example with the U.S and China and giving a good example of the opportunity cosy truly helped me understand the difference between the two.
I appreciate the given examples and that they are color coded to aid the viewer trying to learn.
I really enjoyed hot this video broke down the differences between comparative and absolute advantage. It had been a while since I had learned about this in economic so it was a great refresher.
I like to pose the argument that trade has hurt us as far as debt goes to other countries. But these are very important lessons to learn esspecially in the buisness world.
I have taken three economics classes, and I think that I understood more in this video than those three classes about comparative and absolute advantage.
When I was in economics, I remember struggling with comparative and absolute advantage. I wish I'd seen this video back then! This provided a better visual and example, which helped me understand better than before. Learning about opportunity cost is critical because it can assist in selecting the best option, allowing one to select what may be the most effective and tactically available option for their situation.
I enjoyed watching this video about absolute vs comparative advantage. this video along with many others provides a great visual to better understand the concept. The examples and formulas helped give a perspective of economics and taught me some things that I might've forgotten before. Great video!
I no longer need to go through the slides anymore, the explanation was incredible ;)
This was probably my favorite video from this semester because this is something I didn't quite understand as well as I should have coming out of a couple of economics classes. The simplification of the meanings of each along with examples with actual calculations allowed me to wrap my mind around the idea of what each advantage means as well as why it means that.
After taking an economics class the last 2 semesters I had a pretty good understanding for absolute advantage and comparative advantage but this video put it in a different way that helped me understand it better. I think the simplified examples really aided in my further understanding of the topic.
This video shows how important absolute and comparative advantage are and how we can use this to analyze business and companies across the globe.
This video clarified aboslute and comparative advantage better than many I have seen, especially the formulas. I appreciate the simplicity of these videos that allow for better understanding.
This video is such a good clarification because I tend to get absolute advantage confused with comparative advantage. I am quickly reminded of “more efficient” to correlate with absolute advantage and “lower opportunity cost” for comparative advantage. The examples in this video also help break down what those sayings even mean and they helped me to remember which goes with which.
I like how you went in-depth with the example about the U.S. and China to explain the differences in absolute and comparative advantage. I had taken an economics class a few semesters ago, so I knew the basic idea of these topics, but you did a great job explaining everything in simple terms to help me remember the concepts.
Absolute is such an advantage.
This video is perfect for those having difficulty in this topic. Dr. yang discusses absolute and comparative advantages in a clear and professional way for all students/learners to understand!
I just recently learned about comparative and absolute advantage last semester in economics and probably one of my favorite things ive learned about this year.
I remember learning just the very basics of this in High School but this video picked up where I was left off. It is very interesting how countries can interact and trade with each other to share goods. The world is differentiated by geographical aspects that may leave a country short in one field than another country may be in that area. So the ability to comprehend the absolute or comparative advantage a country has on another really aids in the understanding on how the world moves.
Watching this video was a throwback to basic economics! I love the simplified examples used to represent the differences in absolute and comparative advantages, as well as how they are put into perspective in how they are utilized in a bigger economy. Loved the way everything was so easy to understand; if I ever have to bring up the subject of different economic advantages to a friend, I’ll definitely recommend watching this video.
Good ole absolute and comparative advantage. This was always a quite easy topic for me in high school. I remember being tested over this topic so much and honestly if we had this video back then, the entire class would have aced those tests. Your videos are always so simple and straight to the point. I tend to have to weigh different advantages in the field of work I do.
So far, this has been my favorite video of this semester. Economics has been my favorite subject for a while now, and I haven't been able to take anything economics related for the last 2 years. This video served as a good refresher to some of the concepts within economics like advantages within trade and who should produce what product. I liked the way you explained how to calculate opportunity cost and the meaning behind it. Great Video!
This video reminded me of my previous two semesters of accounting and economics classes. They explained it a lot less enthusiastically than here and seeing it in media form definitely reinforced the concepts for me, had I seen this previously, it would have been very useful to me.
I learned this in my economics class and it was so stressful at first. This video has made these two terms more easily to understand the subject.
The visuals in this video really helped me understand this concept. I used to have trouble understanding comparative and absolute advantage in high school, but this video made it more clear.
I particularly liked this video because I have never learned about absolute and comparative advantage. It is clear given the geographic location countries have more advantages than others and it talks about fairness and justice.
I found quite interesting how a business can use comparative advantage to decide which product would be more efficient to produce. This knowledge seems like it would come in handy in my career.
This video was I think one of my favorites for this class. This being because I love the math side of the finance world, and this video had that little sprinkle that I really enjoyed. I actually use this video as reference for my other classes. Comparative advantage actually comes up quite of ten in another one of my classes, and this video is the only thing that has helped me really understand what it is. The examples are great and easy to follow and understand.
I really enjoy most of the videos because the animations are really good! It is also very enjoyable because it makes it easy to pay attention to these videos. The examples used really help with learning about trading goods around the world.
I had a hard time grasping this concept in my Economic classes my freshman year. This video helped clear up my confusion. The examples and definitions made it clear
I have been taught absolute and comparative advantages before and never really understood them. This video was very helpful and I feel I finally understand the difference between the advantages.
I like the set up of the video and how they explain everything. It was easy to understand the absolute advantage and comparative advantage and the examples made it easier too
This video is interesting because it makes you think about the trade networks that keep our modern society afloat. It puts the leverage that comes from having an absolute advantage into perspective and the different avenues by which an advantage can be obtained. While one country may have an abundance on one resource, another country may have more laid back labor laws that give it an advantage in production.
This was helpful in understanding why certain economies create more of one good than another.
This video is useful for those who want to better understand the advantages and disadvantages of trade and the opportunity that it comes with because it’s never easy to trade with different countries.
This is a great video for anyone looking to learn about absolute advantage and comparative advantage. I enjoyed it when you compared the US and China.
I find comparative and absolute advantage interesting. I was always seeking out fairness as a little kid, and to me, fairness was 50/50 split. I remember when I first learned about advantages it fascinated me because even tough it wasn't "even", per say, both parties still benefitted from the trade. It is that way in many aspects of life, too. Not everyone is going to be good at everything, so splitting up work by what people are capable of doing, while not "even", is very fair.
This was a really nice refresher for me! I kind of forgot the details and this video helped even if it was a simplified version. I do not like math and this really helped me to think through it as well. I think the examples in every video are great and the way these videos are laid out is great too!
I enjoyed watching this video about absolute and comparative advantages. These topics were ones I did not fully understand while taking my economics classes. However, after watching this video, I feel like I slightly have a better understanding of these topics. The examples provided in the video really helped to break down the topics and helped me better understand what they mean.
This video is a good refresher from when I learned about absolute advantage and comparative advantage in my past Economics class, and it actually answered some questions about aspects that I was confused about. I think that the examples made this video and concept very easy to understand. This video puts into perspective how important trade really is for countries.
This was one of my favorite sections of the class. International trade has long been fascinating to me. While the video acknowledges that it's a very simplified explanation that leaves out potential complications, it is still a very interesting and informative take on how international trade can benefit two nations. The mathematical examples are also very helpful.
Absolute and comparative advantages are ideas I think we hear a lot in business education but rarely go in depth on. I think this video was very helpful in understanding these topics as each are discussed well and shown in examples. One thing I hope to keep with me from this video is the definition of comparative advantage: found when a country can manufacture a product at a lower opportunity cost than another country.
Comparative Advantages and opportunity costs are a subject that I've learned about a lot this year from a few different classes. This video was the best method from any of my other classes at helping me understand these topics. It was also a great explanation as to why these advantages matter and also what limitations there are with them.
I learned great importance regarding absolute and comparative advantage when it comes to which country can be more efficient. A good example I learned from this video is trade between China and United States. This concept gave me a better clarification on how countries use their sacred resources efficiently compared to other countries.
Watching this video helped me better understand absolute advantage and comparative advantage. This video helped to show how a company can benefit from international trade.
I really wish I would've watched this video in one of my previous business classes. This video really provides a great structure to deepen your understanding in absolute and comparative advantages. The examples in this video added to the easiness to follow and understand each advantage.
Distinguishing the concepts between Absolute Advantage and Comparative Advantage was hard to grasp from a textbook. This video gives good, clear examples of how opportunity cost is derived and how it plays a part in comparative advantage. Without this video, I would have been lost going into my assessments.
This is an interesting video that gives some much needed context to the concept of advantages. It is easy to assume that an advantage is an advantage. But just because you have a comparative advantage does not mean that you will have an absolute advantage.
I've learned about absolute and comparative advantage in multiple other course in highschool and towards my major, so this video was a really good recap. I like how the process of finding each is very logical and it makes it easy to understand and retain. The examples in this video were very helpful and definitely clarified some confusing aspects.
This was so informative, the video breaks down the differences between absolute advantage and comparative advantage so easily! Makes it so much easier to understand the concepts. This video has really enlightened me!
I enjoyed this video because I already knew a little bit about the topic but the explanations and examples gave me a deeper understanding. In the economics classes I took I never really got a grasp of this topic but this video helped grow my understanding.
After watching this video I learned a lot of facts about the U.S. I was able to identify the differences between absolute and comparative advantages.
I enjoyed this video very much. It is informative and explained absolute advantage and comparative advantage very clearly. The simple examples made it easier to understand how absolute and comparative advantages work.
This video explains in a very easy way the differences between both types of advantages providing very good and simple examples. Sometimes is not easy to understand the difference but this video makes it so clear, and in a very short period of time. A very good way to learn!
I really enjoyed this video because it explained a concept that I was not 100 percent sure I understood. It was also interesting to learn the that even though we do have a huge economy in the United States, we rely pretty heavily on trade. Without trade, we would go without a lot of products that we import from all over the world. It also helps to keep costs down on a variety of products we enjoy.
This video made me understand more about economics. I remember leaning the basic economics and my professor provided us a similar example as the one the video explain. This video is very informative.
Learning about absolute and comparative advantage is very important in the business world. This is not my first class that these concepts have been talked about, so after watching this video, it gave me a better understanding of them. It points out many important things that people looking to work in the business world will need to know. This was a very interesting and informative video!
This video was incredibly helpful! It provided a clear explanation of absolute advantage and comparative advantage, and I now grasp the distinctions and advantages that different countries possess. I especially appreciate the use of practical examples to illustrate the concepts, as I know I'll need these tools in the future to interpret similar situations effectively. Many thanks for this valuable resource!
I have a somewhat background since I previous took economics in previous semesters. This video was a great explanation of absolute advantage versus comparative advantage. I think that this video did a great job at explaining difficult topics.
This video was helpful and very much a think piece. It was very informative and did a great job at explaining. It painted the picture very well.
The explanation was so smooth!
I found this interesting as it reminded me of something I was taught in a class I used to have. The teacher told us a situation where two people were arrested and the police needed someone to confess. They told each one that if neither confess, they would get 2 years in prison. If one confesses and the other doesn't, the one that confess gets off scot free while the other gets 10 years in prison. Finally, if both confess, they both get 4 years behind bars. At first you wouldn't confess as 4 years is longer than 2 years, but then you start thinking that if you confess and the other doesn't you get off scot free. Likewise, if the other person confesses and you don't, you get 10 years in prison. At the end, it was the best option for both people to confess as it gives them the best probability.
I remember learning of absolute advantage and comparative advantage, so this video was a nice refresher course. like how you went in-depth with the example about the U.S. and China to explain the differences in absolute and comparative advantage. Excellent informational video.
Great way of explaining and simplifying the topic! Very easy to comprehend and follow along. I liked to see the comparison between countries.
I really appreciated your examples in this video. I think comparative and absolute advantages are interesting topics in the global economy, especially as they can change dramatically over time. I think that determining which country has an absolute or comparative advantage in certain goods could be a difficult task for economists or international businesspeople.
I really enjoyed this video. I have learned about absolute and comparative advantage in economics class, but it was always a bit confusing. This video helped break down what each advantage means into simple terms. It then was applied to real-world situations.
This video highlights the differences between absolute and comparative advantage and how it explains why company outsourced. Absolute advantage means a country manufactures a product more efficiently than others. Comparative advantage is when if a country can manufacture a product at a lower opportunity compared to another.
this is a very useful video. thanks to this video i have a better understanding of absolute advantage and comparative advantage. i have learn some of the differences and some of the comparative and absolute advantages between some countries. i love how they use examples in order to understand the concept since i know that one day i will have to use these tools and i will have to know how to read those kind of situations.
Good explanations!
There is always measurable benefit to trade when potential trading partners have different opportunity costs because that means each will have a comparative advantage in one product.
U made everything simple ❤
Very informative video; it goes over the differences between absolute advantage and comparative advantage. I do think this video does help students understand the concepts behind absolute advantage and comparative advantage. Thanks for another great learning video.
There's one thing that has been perplexing me about how comparative advantage is used to justify free trade. All of the explanations for why country B that is worse at everything than country A, should still engage in exercising their comparative advantages seems to rest on the notion of cooperation and coordination in production. In other words, country A and country B should consult each other and coordinate production. However, without such deliberation and agreement, what signals help allocate production other than price? I've been looking but as of yet I've not found countries that coordinate, cooperate in their production in order to expand their production possibility frontier. The only example that I've seen are in Latin American countries through associations based on coordination and cooperation such as ALBA ( Alliance for the Peoples of Our America or the Bolivarian Alliance for the Peoples of Our America) that deliberately follow a non-FTA approach.
I'd posit to say that in most developed countries, production is not to maximize the PPF but for production's purpose itself (i.e. to generate profits).
I understand difference between Absolute Advantage and Comparative Advantage. You know Japan is small coury and we do not have oil. Therefore, comparative advantage is really important for my courty.
I hope one day Chinese men soccer team can catch up with Japan, lol.
Very good
Wow 😮
thanks
This video really helps understand the difference between absolute advantage and comparative advantage! Going in depth also on what countries have a absolute advantage or comparative advantage as well helps grasp a understanding on what those terms mean!
I forgot about the idea that comparative and competitive advantage is considered in international trading
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This video is very good and speaks on very good topics of knowing how and why countries are given the different types of advantages that they are. “Izayah Mayfield” mana- 3312
I remember struggling with comparative and absolute advantage when learning this in economics. How I wish I would have seen this video then! This gave both a better visual and example that helped me understand better than I did before. Learning about opportunity cost is so important as it can help choose the best option, thus allowing one to choose what might be the most effective and tactical available option for their situation.
Great video. I learned about absolute and comparative advantages in economic classes and really liked it. This video was a good refresh for me since it's been a while since I last learned it. Your examples and descriptions helped me really understand it better.
Excellent explanation of comparative vs absolute advantage. This is sometimes a somewhat difficult concept to grasp but this video does a great job. It's also great to see how important it is for countries to trade with each other due to comparative and absolute advantage.