---
entity_slug: comparative_advantage_principle
evaluator: null
evaluated_at: '2026-02-23T05:01:10.990638'
overall_score: 4.0
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly articulates the core concept of specialization
    based on relative efficiency advantages rather than absolute advantages. It distinguishes
    comparative advantage from mere self-sufficiency arguments, though it could be
    more precise about the "relative" nature of the efficiency comparison.
- name: source_grounding
  value: 3.0
  max_value: 5.0
  rationale: While Smith does advocate for specialization and trade based on natural
    advantages, the formal "comparative advantage principle" as defined here is more
    associated with David Ricardo's later work. Smith's arguments in Book IV, Chapter
    2 focus more on absolute advantages and the folly of protectionism than on the
    systematic relative advantage framework described.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate for this principle, as
    comparative advantage fundamentally concerns trade relationships and the optimal
    allocation of production across trading partners. This is clearly an exchange-focused
    economic concept.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This principle maps well to S4 (intelligence/environmental adaptation)
    as it involves scanning the environment for optimal production opportunities and
    adapting national economic strategy accordingly. It also has relevance to S5 (identity/policy)
    as it guides fundamental policy decisions about economic specialization.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides significant explanatory power for understanding trade
    patterns and the structural logic behind specialization decisions. It illuminates
    the mechanism by which nations can achieve mutual benefit through trade even when
    one nation is more efficient at producing all goods.
---

# Evaluation: Comparative Advantage Principle

## definition_precision — 4.0 / 5.0

The definition clearly articulates the core concept of specialization based on relative efficiency advantages rather than absolute advantages. It distinguishes comparative advantage from mere self-sufficiency arguments, though it could be more precise about the "relative" nature of the efficiency comparison.

## source_grounding — 3.0 / 5.0

While Smith does advocate for specialization and trade based on natural advantages, the formal "comparative advantage principle" as defined here is more associated with David Ricardo's later work. Smith's arguments in Book IV, Chapter 2 focus more on absolute advantages and the folly of protectionism than on the systematic relative advantage framework described.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate for this principle, as comparative advantage fundamentally concerns trade relationships and the optimal allocation of production across trading partners. This is clearly an exchange-focused economic concept.

## vsm_relevance — 4.0 / 5.0

This principle maps well to S4 (intelligence/environmental adaptation) as it involves scanning the environment for optimal production opportunities and adapting national economic strategy accordingly. It also has relevance to S5 (identity/policy) as it guides fundamental policy decisions about economic specialization.

## explanatory_value — 4.0 / 5.0

The entity provides significant explanatory power for understanding trade patterns and the structural logic behind specialization decisions. It illuminates the mechanism by which nations can achieve mutual benefit through trade even when one nation is more efficient at producing all goods.
