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Maple syrup and avocados.

Written by Cole Schafer

Back in 1817, an economist named David Ricardo came up with the concept of 'comparative advantage'. It's the ability for a country to produce a product better and easier than their trading partners. Canada has a comparative advantage in maple syrup. They produce 75% of the planet's maple syrup. That's an astonishing amount.

Now, if Canada were stubborn, they would also try to grow avocados. And, with enough investment of time and money, they could probably grow enough avocados to support their country's avocado consumption and perhpas a few others. But, they would have to war against their own country's climate, constructing tens of thousands of square feet in greenhouses. What makes more sense is for Canada to get their avocados from Mexico. This allows them to focus on producing maple syrup.

Comparative advantage doesn't just apply to trade between countries. It's how businesses do business with each other. Find your comparative advantage. What can your business do better and easier than everyone else? Once you find this comparative advantage, leverage the hell out of it.