THEORY OF COMPARATIVE ADVANTAGE

 Theory of Comparative Advantage, by definition, is a trade wherein products with the

greatest advantage are exported and products with the greatest disadvantage are imported.

 For example, the Philippines is rich in agriculture (natural resources and hardworking

farmers), therefore the agricultural export industry is healthy because they have an

advantage. In contrary, the Philippines is not that high in rankings globally when it comes

to oil reserves, resulting to the country importing from countries that are rich in

petroleum like Canada and Saudi Arabia.