What is the law of comparative advantage?

A country's greatest advantage is in the import of goods that it cannot produce.

A country is better off producing the goods and services that it has a comparative advantage supplying.

A country that supplies things for other nations has a comparative advantage in trade.

A country has a comparative advantage if it produces goods for export.

Question

Reece

24 February, 00:08

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Answers (1)

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Kaiden Golden · Answer 1

Answer Comparative advantage is the ability of one party to manufacture goods and/or produce services at a lower opportunity cost than another party.