David Ricardo, a Scottish economist, made a perceptive observation that a few individuals, firms, or countries can gain from trading, even if one of them is objectively the best in all activities.

A comparative advantage can be something inherent, in the way a person’s height might make them better at basketball. It can also be developed and improved, the way one basketball player can become ...

East Asia's successful economies have achieved astonishing economic growth through export-driven development. They have exploited their comparative advantage of having an abundance of lower-skilled ...