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When a country can produce a product more cheaply than its trading partners, it is known as __________?

User Fredericka
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When a country can produce a product more cheaply than its trading partners, it is known as: comparative advantage
For example, United States often imported exotic fruits from Brazil. Since Brazil is a tropical country, the cost in producing exotic fruits will be significantly lower compared to growing it in the United States. Therefore, we can say that brazil has a comparative advantage in this product compared to united states.
User Nikita Skrebets
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