The law of comparative advantage states that countries _________ in producing and exporting the goods that they produce at a lower _______ cost than other countries.

Question

Quizplus · Accepted Answer

The law of comparative advantage suggests that countries should specialize in producing and exporting goods for which they have a lower relative (opportunity) cost compared to other countries, rather than focusing on goods for which they have the absolute lowest cost of production. This principle underpins international trade, allowing countries to benefit from efficiency and productivity gains.

The Law of Comparative Advantage States That Countries _________ in Producing