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Comparative Advantages Related to a Municipality – the Experts View

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  • Yana Balashova-Kostadinova

    (University of Economics - Varna)

Abstract

In recent years competitiveness has intensified immensely not only between businesses but also amongst territories. This is on large part due to globalization, development of communication technologies as well as the easy opportunities for traveling and exploring. Territories nowadays have to look for ways they can improve their competitiveness not only on the global markets or related to their attractiveness to external audiences but also related to local residents’ and business’s attitude towards the territory itself. One way to increase the competitiveness of a territory is to use its advantages in order to distinguish it from other territories with similar characteristics. In classical economics theory two types of advantages are described comparative advantages and absolute advantages. Absolute advantages can be used to build competitiveness but not all territories have absolute advantages and also absolute advantages are not always enough to ensure sustainability over time. Territories have to also look for and explore the options for developing their comparative advantages. Comparative advantages are derived from the opportunity for exchange which leads to increased productivity and consumption. In other words the value of the comparative advantage is assessed based on the advantages the competitor has. Applied towards territories comparative advantages could be found in specific features pertaining to the territory like certain climate conditions, a given set of natural resources, the available sightseeing sights, traditional culture, local customs and traditions, certain locally produced food and drinks and so on - all of which give the opportunity to build advantages over competitors. In the current paper the experts’ views on identifying the potential comparative advantages of Varna municipality will be put up for discussion.

Suggested Citation

  • Yana Balashova-Kostadinova, 2017. "Comparative Advantages Related to a Municipality – the Experts View," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(1), pages 41-52, July.
    • Handle: RePEc:aes:icmbdj:v:1:y:2017:i:1:p:41-52
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    References listed on IDEAS

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    More about this item

    Keywords

    comparative advantage; competitiveness; territory.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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