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Comparative advantage

Friday, July 23, 2010

In international trade. The law of comparative advantages says that a nation should specialize in producing and exporting those commodities which it can produce at relatively lower cost and that it should import those goods for which it is a relative high cost producer. Thus  it is a comparative advantage, not an absolute advantage, that should dictate trade patterns.

1 comments:

PENNY STOCK INVESTMENTS said...

Theirs are those with advantages.

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