Minimum Of 100 Words And A Reference The Theory Of Comparative Advantage States

Minimum of 100 words and a reference.

The theory of comparative advantage states that there are gains from trade if countries specialize and optimize their opportunity costs.

  1. Why is comparative advantage a driving force behind trade behind trade between regions and countries?
  2. Why does specialization lead to welfare improvement? Why engaging in trade is better than trying to be self-sufficient?
 
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