Entrepreneurship And Comparative Advantage Essay

966 Words4 Pages
The article of ‘’entrepreneurship and Comparative advantage’’ written by Carmen Elena Dorobat and Mihai-Vladimir Topan shows the relationship between comparative advantage and entrepreneurship and the role of entrepreneurship in the international trade. It also goes in depth to explain the importance and the need for the entrepreneurship in the modern society and the ways it can affect the certain aspects of the economy of a nation and furthermore explains in brief the history of entrepreneurship. The article also explains the relation of entrepreneurship and international specialization and the important concept of the entrepreneurial judgment.

Throughout the history and especially in the last few decades the role of entrepreneurship
…show more content…
The return was largely due to the social managerial and psychological factors than the economic theory. Having different perspectives to the concept of entrepreneurship was common early on as the different views regarding it made the entrepreneurship very difficult to progress and develop in international trade. According to Misses (1998) it is not possible to neglect the role of the entrepreneur in the market of economy as the different complementary components of the production is gathered and embedded by the entrepreneurs. Entrepreneurship is about the identifying and creating opportunities. Entrepreneurship is major drivers of present and future welfare. Entrepreneurship can cause economic growth, the idea of starting a new business that involves innovative ways such as improving the quality of a product and decreasing its price so they attract customers and also save the customers extra spending on a product will lead to economic…show more content…
A country will have a comparative advantage to the other country if it can gather the labor force and capital and provide the most favorable condition to the production of a product which will obviously lead to the productive efficiency. When an entrepreneur assess the condition in order to start a production the comparisons of inputs to produce and output is not only based to the past or the current prices but also the future prices which is the time it is provided to the market. While comparing the productive alternatives it is more important to consider the comparative advantage in which they specialize alongside profitable allocation of the assets. The results of the trade either profit or loss and the customer preference will help determine in which particular section they have the comparative advantage and will help determine where they need to specialize.
Comparatives advantage shows that specialization is possible and useful in situation where the diversity is minimized which means that by using the profit and loss system consumers are the one who decide efficiency of entrepreneurial specialization decisions. Therefore the comparative advantage and the international specialization are not natural given as they are dependent on the ever changing consumer

More about Entrepreneurship And Comparative Advantage Essay

Open Document