The Revealed Comparative Advantage (RCA) is a trade analysis tool to measure and assess the competitive advantage of the product which the business people need to export. The RCA indicates whether a country's product is in the process of extending the products in which it has a trade potential or simply competitive advantage. The values of an RCA indicate the country's competitiveness vis-à-vis the world. It also helps to assess a country's export potential.
Results indicated that
A value of less than unity implies that the country has a revealed comparative disadvantage in the product.
If the index exceeds unity, the country is said to have a revealed comparative advantage in the product.
