The theory of comparative advantage is based on the idea that a country should focus on what it does best rather than trying to produce everything.

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The theory of comparative advantage states that countries should specialize in producing goods and services in which they have a lower opportunity cost and trade with other countries for goods and services in which they have a higher opportunity cost. This allows countries to maximize their production and trade efficiently, leading to overall economic gains.

The Theory of Comparative Advantage Is Based on the Idea