The argument that an artificial division of labor has made earning a good income from free trade difficult for most less developed countries is called competitive advantage.

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The argument that an artificial division of labor has made earning a good income from free trade difficult for most less developed countries is actually the concept of dependency theory. Competitive advantage refers to the ability of a country to produce a good or service more efficiently and at a lower cost than other countries, giving them an advantage in international trade.

The Argument That an Artificial Division of Labor Has Made