Comparative Advantage - Overview, Example, Benefits and vs. Absolute Advantage
Comparative advantage is one of the core principles in economics that helps explain the basis for trade and specialization. It occurs when a party, whether an individual, business, or country, can produce a good or service at a lower opportunity cost than others. This principle is vital in showing that even though no country or individual can possess an absolute advantage in the production of any good, a country or individual may gain from trade by specializing in those activities for which it or he is relatively best.

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