Comparative advantage shifts over time as less developed countries become more developed and realize their latent opportunities.

Question

Quizplus · Accepted Answer

As less developed countries become more developed, their access to resources, infrastructure, and technology improves, allowing them to specialize in different goods and services and shift their comparative advantage. This is because the comparative advantage of a country is not fixed and can change over time as a result of various factors such as technological progress, changes in resource endowments, and shifts in global demand patterns.

Comparative Advantage Shifts Over Time as Less Developed Countries Become