While the country of New Zafariland specializes in dairy products,its geographical neighbor,Zwansea specializes in heavy machinery.New Zafariland exports dairy to Zwansea,which in turn exports heavy machinery to New Zafariland.According to the theory of comparative advantage,this mutually beneficial trade relationship best illustrates

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This trade relationship between New Zafariland and Zwansea demonstrates the principle of comparative advantage where each country specializes in the production of goods they can produce efficiently and trade with each other. It is a positive-sum game because both countries benefit from the trade. There is no reference to trade barriers, first-mover advantage, mercantilism or zero-sum game in the scenario.

While the Country of New Zafariland Specializes in Dairy Products,its