Question

what is comparative cost theory ? Explains.

Answer 1

Answer:

Explanation:

The comparative cost theory explained that different countries would specialise in the production of goods on the basis of comparative costs and that they would gain from trade if they export those goods in which they have comparative advantage and import those goods from abroad in respect of which other countries

Answer 2

David Ricardo's Theory of Comparative Cost Advantage. ... A country will specialise in that line of production in which it has a greater relative orcomparative advantage in costs than other countries and will depend upon imports from abroad of all such commodities in which it has relativecost disadvantage.

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