On the Principles of Political Economy and Taxation · David Ricardo

Comparative advantage examples

Curated by · reviewed 2026-06-01

Do what you're relatively best at and trade for the rest — even if someone else is better at everything, you both gain by specialising.

What is comparative advantage? Read the full idea →

5 examples of comparative advantage

  1. The lawyer and the typist

    A lawyer who types faster than their assistant should still lawyer and let the assistant type — their hour is worth more in court.

  2. Countries trading

    Ricardo's point: nations prosper by making what they're comparatively best at and importing the rest.

  3. The startup founder

    Even a founder who can code best should often hire it out to spend their scarce hours on strategy.

  4. Household chores

    Splitting tasks by who's relatively best, not absolutely best, gets more done overall.

  5. The all-rounder's trap

    Being good at everything tempts you to do everything; focus on your edge and delegate the rest.

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