The principle of comparative advantage states that countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that countries should specialize in producing goods for which they have a comparative advantage, or a lower opportunity cost of production, than their trading partners. This allows for increased efficiency and trade between countries, benefiting both parties.

The Principle of Comparative Advantage States That Countries Should Specialize