Question

As per the principle of comparative advantage a country shall benefit in foreign trade if it

Answer 1

Comparative advantage suggests that countries willengage in trade with one another, exporting the goods that they have a relative advantage in productivity. The theory was first introduced by David Ricardo in the year 1817.Comparative advantage is the ability of an individual, company or country to produce a good or service at a lower opportunity cost than its competitor. Having acomparative advantage doesn't mean that one entity is better than another at producing a good or service. It means that it sacrifices less to do so.Comparative Advantage Theory and Examples. Comparative advantage is when a country produces a good or service for a lower opportunity cost than other countries. Opportunity cost measures a trade-off.