In the framework of international trade, what is “comparative advantag

QUESTION

In the framework of international trade, what is “comparative advantage”?

What will be an ideal response?

ANSWER

Answer: In comparative advantage, a country sells to other countries the products and services that it can produce most cheaply and efficiently. The country buys from other countries products that it does not produce most cheaply or efficiently.
Explanation: By exporting goods that require fewer domestic production resources and importing goods that would require substantial domestic production resources, a country can maximize profits and utilize its resources wisely. This gives the country a comparative advantage.