The fact that international specialization and trade based on comparative advantage can increase world output is reflected in the fact that:

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that each country should focus on producing and exporting goods that it can produce at a lower opportunity cost than other countries. This leads to an increase in world output as each country specializes in the production of goods in which it has a comparative advantage. As a result, a nation's trading possibilities line lies to the right of its production possibility, indicating that it can consume more goods than it could have produced on its own.

The Fact That International Specialization and Trade Based on Comparative