The law of comparative advantage was first mentioned in 1817 by English economist David Ricardo.

Governments around the world impose rules, regulations and restrictions like:

Certain countries have unique strengths, local resources and talent that can be a comparative advantage to them, and make products at a cheaper cost than other countries. If they indulge in protectionism, the end result is higher costs and inefficiency for all.

When a company is at a better position to provide strong value to the customer, it is said to be at a competitive advantage.

An opportunity cost is the potential ‘alternative’ or benefit that is forfeited when one chooses a particular option.

• Comparative advantage is only an advantage of a lower opportunity cost, and does not factor in volume or quality.
• Absolute advantage is the pure ability of a company to produce better goods or services (in quantity or quality) than...