What concept is best illustrated when developing countries exchange raw materials (extracted and semi-processed with low-priced labor) for high-technology products from industrialized countries?

Question

Quizplus · Accepted Answer

This scenario best illustrates the concept of comparative advantage, where countries specialize in producing goods for which they have a lower opportunity cost, and then trade those goods. Developing countries have a comparative advantage in producing raw materials due to their abundant natural resources and low-cost labor, while industrialized countries specialize in producing high-technology products.

What Concept Is Best Illustrated When Developing Countries Exchange Raw