This question is about absolute advantage vs comparative advantage.

What are the limitations of comparative advantage?

By Zippia Team - Dec. 7, 2022

The main limitation in having a comparative advantage is a lack of control of the larger market. For example, the comparative advantage may be reduced by:

Transport costs
Tariffs
Exchange rates
Imperfect competition

All of these factors and more will reduce the opportunity cost ratio, and they can be hard to predict and account for.

What are the limitations of comparative advantage?

Choose from 10+ customizable resume templates

Zippia allows you to choose from different easy-to-use templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.