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Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, this can be explained by the theory of comparative advantage.
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Banks have extensive and efficient credit approval systems, which gives them a comparative advantage in knowledge (regarding sector-specific information, legislation and market developments).
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When companies want to borrow, they look for cheap borrowing, i.e. from the market where they have comparative advantage.
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In these cases, one can not define which country has comparative advantage.
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The moment the model expands from one good to multiple goods, the absolute may turn to a comparative advantage.
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Programs, projects and activities were planned and implemented that would accent the comparative advantage of the university.
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Therefore, international standards would undermine any comparative advantage by increasing the cost of labor.
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This difference gives rise to a comparative advantage, a key concept in economics.
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Just like interest rate swaps, the currency swaps are also motivated by comparative advantage.
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While there are possible gains from trade with absolute advantage, comparative advantage extends the range of possible mutually beneficial exchanges.
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