The concept of "comparative advantage" refers to the

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Comparative advantage refers to the ability of one region to produce a commodity at a lower opportunity cost than another region. This means that one region can produce a good or service at a lower cost, compared to another region, in terms of what they have to give up (the opportunity cost) to produce it. This forms the basis for international trade, where countries specialize in producing goods and services that they have a comparative advantage in, and trade with other countries for goods and services in which they do not have a comparative advantage.

The Concept of "Comparative Advantage" Refers to the