According to the principle of comparative advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

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This is the basic principle of comparative advantage, as identified by David Ricardo, an economist. It suggests that specialization and trade benefit all countries involved by allowing them to take advantage of their individual comparative advantages.

According to the Principle of Comparative Advantage, Each Country Should