When a product's components are made in the country that can produce them at a high level of productivity and assemble them in another country where productivity in assembly is high, it resembles the theory of ________.

Question

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This scenario describes the concept of comparative advantage, which states that a country should specialize in producing and exporting goods that it can produce more efficiently and at a lower opportunity cost than other countries, while importing goods that other countries can produce more efficiently. In this case, one country is better at producing the components, while another country is better at assembling them.

When a Product's Components Are Made in the Country That