Comparative advantage: If a nation or individual is relatively more efficient in producing a better country or individuals, we say that she has a comparative advantage in producing that good. Comparative advantage of measuring the effect of relative magnitude. Since these countries have limited resources and the level of technology they tend to produce the spirit or the services they have comparative advantage. Comparative advantage (now CA) implies an opportunity cost associated with the production of a good in comparison with the other. That is why the countries tend to specialize in the manufacture of certain products. This concept is called the International Labor Division.
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