opportunity cost

Optimal coordination of purchasing, inventory and demand management

This research is motivated by the long-standing problems faced by one large wholesaler in Hong Kong, which plays the role as a sourcing agent for over a thousand of worldwide clients on hundreds of products. Around forty percent of the commodities are sold via contracts, and the remaining sixty percent ...

Comparative Advantage and International Trade

Comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. where the opportunity cost of production is lower. The basic theory of comparative advantage was developed by David Ricardo. Ricardo's theory of comparative advantage was further developed by Heckscher, Ohlin and ...