Question

Explain the theory of comparative cost advantage with a suitable example

Answer 1

Comparative Advantage Theory and Examples. Comparative advantage is when a country produces a good or service for a lower opportunity cost than other countries. ... But the good or service has a low opportunity cost for other countries to import. For example, oil-producing nations have a comparative advantage in chemicals.

Answer 2

Answer:

Explanation:

the good or service has a low opportunity cost for other countries to import.