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Comparative Advantage
The ability of a country or individual to produce a particular good or service at a lower opportunity cost than its trade partners.
Heckscher-Ohlin Theorem
A theory that explains the existence of a country’s comparative advantage by its factor endowments: A country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product.
Resource Allocation
The process of assigning and managing assets in a manner that supports an organization's strategic goals.
Resource Constraints
Limitations on the availability of resources, which can restrict output, growth, and efficiency.
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