The concept of comparative advantage in international trade is based on ________ as opposed to absolute costs.

Name: The concept of comparative advantage in international trade is based on ________ as opposed to absolute costs.
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity costs, which is the cost of giving up one opportunity to pursue another. It is the relative cost of producing a good by one country compared to another country, rather than the absolute cost of producing that good.

The Concept of Comparative Advantage in International Trade Is Based