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Hunter Courtney
on Oct 25, 2024

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Comparative advantage arises from:

A) differences in climate,factor endowments,and technology.
B) absolute advantage.
C) countries engaging in autarkic behavior.
D) an emphasis on export production.

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country or region possesses, which determines its comparative advantage in international trade.

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other producers.

Climate

The long-term pattern of weather conditions in a particular area, including temperature, precipitation, humidity, and seasonal variations.

  • Acquire knowledge about the principle of comparative advantage and how it dictates the flow of trade between nations.
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Bodin GarlinghouseNov 01, 2024
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