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Economics - Financial Markets 13 Online
OpenStudy (anonymous):

Why should countries specialize in producing goods with which they have a comparative advantage rather than an absolute advantage?

OpenStudy (anonymous):

@therealsamalbert

OpenStudy (anonymous):

A country might have an absolute advantage in producing a good because it has a large population, this doesn't mean that the country is more efficient than other countries. If a country has a comparative advantage, its opportunity cost is lower. Therefore by specializing and trading a good that a country has a comparative advantage with, the country can get more out of what it produces.

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