According to the theory of comparative advantage, mutually advantageous international trade is based on differences in

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The theory of comparative advantage suggests that mutually beneficial international trade can be realized by countries specializing in the production of goods that they can produce at a lower cost compared to other countries. Therefore, the relative cost of producing goods in different countries is the basis of comparative advantage and determines the patterns of international trade.

According to the Theory of Comparative Advantage, Mutually Advantageous International