TIGER ATHLETICS
In economics, we say that a particular country has a comparative advantage in producing a good when it can produce that good at a lower opportunity cost than other countries1. This simply means that what that country has to give up in order to produce that good is lower compared to what other countries have to give up. To maximize gains from international trade, economists say that each country should specialize in producing a good in which it has a comparative advantage.
How is this economic concept useful to you as you think about choosing your major? It may help you to choose a major that gives you maximum benefits. Here’s how to choose a major in college! You can go about using the concept of comparative advantage to choose a major in three easy steps.
How To Choose A Major In College, 3 Easy Steps!
Discover your own comparative advantage
Take an inventory of your interests, talents, strengths, weaknesses, financial goals, etc. You may even rank these by their importance (value) to you. The more exhaustive the list, the better. Also consider the employment trends (job opportunities, location, skills needed, earning potential, etc.) of your possible majors. Check out bls.gov for any career out there. This allows you to see how to choose a major to match your goals.
Consider your losses.
As you consider alternative majors, think about how much you have to forego (in terms of interests, talents, finance goals, etc.) for choosing each major. Using your interests and strengths and earning more money in a major would be a plus, for example, whereas using your weaknesses and giving up your talents and other goals would be a minus.
Choose the major in which the value to you of the things you are foregoing is lowest.
That is the major in which you most likely have a comparative advantage. An example of this would be choosing college instead of working. Therefore, you should pick a major that will allow you to succeed while not giving up much in return. After reading this article you should have a better idea of how to choose a major.
Give “comparative advantage” a try as you think about how to choose a major in college. It may just be helpful!
IW has resources available to you as you choose your major. You can seek help from your advisor and you can also visit the Student Success Center.
Source
Agness Mzyece Ph.D, Assistant professor of Agribusiness at Iowa Wesleyan University
References
1Krugman. P & Wells.R, 2018. Microeconomics 5th Edition. Worth Publishers, New York.