What matters most in determining the efficient distribution of production over the world is

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Quizplus · Accepted Answer

Comparative advantage is the ability of a country to specialize in producing goods and services at a lower opportunity cost than other countries. The efficient distribution of production over the world is therefore determined by the concept of comparative advantage, which enables countries to produce and trade goods and services in a way that maximizes their overall welfare. Absolute advantage, efficiency, and the stock of resources are important factors in determining the overall level of production and trade, but they do not necessarily lead to the most efficient distribution of production over the world.

What Matters Most in Determining the Efficient Distribution of Production