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What is the impact of comparative advantage in the local area?
The comparative advantage of a country is defined as the difference between the cost of producing a good or service in that country and the cost of producing it in another country. In other words, if you are more efficient at producing good B than good A and you can produce both goods, then you will have a comparative advantage in producing good B.
Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. ... Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage
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