# Comparative Advantage

*Macro & Economy — Finicade finance glossary*

The idea that everyone gains from trade if each specialises in what they give up least to produce — even a country that's worse at everything. The core argument for why trade makes the pie bigger.

**Related terms:** [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Current Account](https://finicade.com/glossary/current-account), [Supply and Demand](https://finicade.com/glossary/supply-and-demand)

**Taught in:** Hull Street — Swaps

Source: https://finicade.com/glossary/comparative-advantage