Applied Comparative Advantage

In courses of Introduction to Economics across the country, a term known as comparative advantage is usually covered. David Ricardo first applied it as he used it to define trade between two countries. If two countries can produce the same good, but one can produce it at a lower relative cost, the fortunate country would benefit by focusing on that good and trading the surplus.

Comparative advantage can be useful for teamwork when analyzing group dynamics. When forming a team of any kind, it can be beneficial to have a wide range of specialists that are great at what they do. With each person having a different circle of competence, the overall group can achieve more in a shorter period of time. If a team consists of members who have the same area of expertise, the group member’s skills may overlap. Inefficiency would occur that would plague the team when working together on difficult problems. By having a broad spectrum of experts from different fields, comparative advantage will offer the greatest probability that problems will be solved swiftly.

After considering the positive benefits of creating a distinct group, here are a few questions that can be contemplated:

  • What actions can I take to become the best in one area of proficiency?
  • How can I work with a homogenous team that employee the same strengths and weaknesses?
  • Is it best to concentrate on improving old skills or learning new and unique ones?

One thought on “Applied Comparative Advantage

  1. I just cant stop reading this. Its so cool, so full of information that I just didnt know. Im glad to see that people are actually writing about this issue in such a smart way, showing us all different sides to it. Youre a great blogger. Please keep it up. I cant wait to read whats next.

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