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How does comparative advantage affect trade between countries
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How does comparative advantage affect trade between countries

User Greatmajestics
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7 votes

Answer:

Step-by-step explanation:

Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners.

The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.

Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in.

Absolute advantage refers to the uncontested superiority of a country to produce a particular good better.

Hope this helped!!

User Redturbo
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