Competitive advantage - David Rocardo?

Question

Can anyone please explain me how does the Competitive advantage theory, proposed by Ricardo, work??

Thank you!!!!

Answer 1

I'm going to make this short and sweet.... you should focus on what you have the competitive advantage even though you might have an absolute advantage in more than one area.... Example Me and Kobe Bryant ... If I mow lawns for a living, Kobe being well built could probably do that better than me too... however he should focus his efforts entirely on playing ball, because he is so much more better than me at playing ball, Even though he is Absolutely in the Advantage at both... get it.... write back if you don't

Answer 2

Michael H is correct as far as he goes, however the term is "comparative advantage", NOT "competitive advantage". A country may have an absolute advantage or merely a comparative advantage in a certain industry (there is no term "competitive advantage" in the discussion, that's just politician's talk).

But the key point is that if Michael focuses on lawn-mowing and Kobe plays basketball, then both are better off -- Kobe maximizes his income yet still gets his lawn mowed (by hiring Michael), while Michael maximizes HIS income and still enjoys the entertainment of watching Kobe play competent pro basketball.

It's the original win-win situation.

Answer 3

quite -- and no. faith honestly supplies a "aggressive earnings" to teams, no matter if it is a prolonged kinfolk, society or lifestyle. faith grew to grow to be conventional in early societies as a fashion for persons to describe issues that they couldn't comprehend in the different case. to apply your get mutually, why would one berry be poisonous at the same time as different berries are nutritious? someone without expertise of botany and chemistry would don't understand. So, enter an invisible, higher potential which one way or the different dictated each and everything about the international. This mythology honestly took carry and grow to be handed orally, as you're saying. communities that stuck mutually and shared this practice created a equipment of norms and mores which translated right into a more beneficial orderly society than those communities who did not. It is going without declaring that solidarity and company is an advantage to a society. except for, as faith advanced it grew to grow to be a source of thought. If a people trust they are combating, operating, suffering for a higher purpose (inclusive of a God, "freedom", etc.) then the persons are a lot more beneficial keen to do the exertions had to achieve the objectives of the society. it is clear throughout the time of historic previous and continues to be occurring in immediately's international. hence, utilising faith as a "aggressive earnings" has no longer outgrown its usefulness. faith continues to be a substantial motivator, in conflict, obedience to a state, convincing the 1000's no longer to question distress, uniting a u . s . hostile to a unique etc. the U. S. has no imperative faith, it is way you spot different precis suggestions hailed as a rallying cry, like "wrestle for our freedom," "patriotism," and others. as long as there are people in this international who dislike people, faith will be round.