Back to Questions
SSC Geography
QUESTION #6334
Question 1
The concept of 'comparative advantage' in international trade, developed by David Ricardo, implies countries should:
Correct Answer Explanation
Comparative advantage states countries should specialize in producing goods where they have the lowest opportunity cost (what they sacrifice least to produce). Even if Country A produces everything more efficiently than Country B, both benefit from specialization and trade based on relative efficiency.
Sign in to join the conversation and share your thoughts.
Log In to Comment