If however after an analysis we come to a conclusion that our competitors are more productive in the production of product "A" and product "B", then it should be seen which product they are more productive at. The product that they are comparatively more productive at would be their comparative advantage and our comparative advantage would lie in the product in which they are comparatively less productive. Hence although Asian organizations have an advantage of using cheap labor, we can analyze and opt for comparative advantage. Our comparative advantage would lie in the product that we are least bad at producing. Producing such in which our productivity is the worst would not be beneficial to our organization.

             Trade is an important factor for the economical strengthening of the nations across the globe. The exports would be the input of the money into the country where the imports are described as the output of money of a country or nation. Moreover, due to international trade, the consumers in America have the chance to buy the same goods which the local producers make, at relatively cheap prices which do not affect the quality of the product. It is the trade of one good that a country specializes in with a good that another specializes in. Therefore both import and export are necessary and one cannot exist without another. International trade also reduces the inflexibility of an economy and enhances its flexibility and thus enables it to respond to the changing of the economic condition. Competition increases with trade and thus every organization aims at producing better quality products at lower prices. This proves to be beneficial for the consumer and his buying power increases with low priced goods. When organizations have to face a larger supply demand, they need to raise their productivity levels to fulfill the needs of the consumers. With the rapid changes in technologies, trade is a factor that forces organizations to keep up with the technological advancement.