When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
The theory of comparative advantage in international economics states that total worldwide output will be greatest when each good is produced by the nation that has the lowest opportunity cost for that good. This means countries should specialize in producing goods where they have a comparative advantage, thereby maximizing efficiency and total production.
tricky question . one qn is on international economics and the other qn is on international trade