The comparative advantage form of competitive advantage means
A) that a country does not belong to any free trade agreements.
B) that a country is the sole supplier of a product or service.
C) that a country can produce everything better or more cheaply than any other country.
D) that a country can produce some products better or more cheaply than it can other products.
E) that a country can produce something better or more cheaply than any other country.

Question

Quizplus · Accepted Answer

The comparative advantage form of competitive advantage means that a country can produce some products better or more cheaply than it can other products. This means that the country has a relative advantage in producing certain goods or services, compared to other countries, which allows it to specialize in those areas and trade with other countries for other goods and services. It does not mean that the country can produce everything better or more cheaply than any other country, or that it is the sole supplier of a product or service.

The Comparative Advantage Form of Competitive Advantage Means