In: Economics
What is Oman’s comparative advantage (or competitive advantage) in comparison to other countries?
Comparative advantage is the ability of a country to produce goods or services when the opportunity cost of producing that good or service is lower in that country as compared to the other countries in the world.
Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of products, the distribution network, intellectual property, and customer service.
A firm's ability to produce a good or service more efficiently than its competitors leads to greater profit margins, rational consumers will choose the cheaper of any two perfect subtitles offered.
Explanation:
Competitive advantage also refers to factors that allow a company
to produce goods or services better or more cheaply than its rivals
where these factors allow the productive entity to generate more
sales or superior margins compared to its market rivals which lead
to greater profit margins.