When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. then the country will specialize in the production of this good and trade it for other goods?

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Mohammad

Business

24 April, 22:36

When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. then the country will specialize in the production of this good and trade it for other goods?

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Scooby · Answer 1

Comparative advantage is an economic law referring to the ability of any given economic actor to produce goods and services at a lower opportunity cost than other economic actors.

Thus, w hen a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. then the country will specialize in the production of this good and trade it for other goods.