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Comparative advantage

• Refers to the relative advantage between trading parties. It explains why transactions occur even in the absence of absolute advantage. The basis for trade, specialization, and swap transactions.

 
 Embedded terms in definition
 Basis
Swap
Trade
Trading
 
 Related Terms
 Comparative credit analysis
Net advantage of refunding
Net advantage to leasing
Net advantage to merging

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Remember not only to say the right thing in the right place, but far more difficult still, to leave unsaid the wrong thing at the tempting moment. - Benjamin Franklin

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