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Amber Morrant
on Oct 25, 2024

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International trade based on comparative advantage allows a country to produce outside its production possibility frontier.

Comparative Advantage

The capacity of a person, business, or nation to manufacture a product or deliver a service with a smaller opportunity cost than that of their rivals.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, technology).

  • Digest the notion of comparative advantage and its significance for international commerce.
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Rahul ShendeOct 27, 2024
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