Know Benefits of Trade/Comparative Advantage in a proper way
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What do you means by Comparative Advantage?
The term comparative advantage indicates that when a person or a company produces any goods which has the lower value than other person, no matter that cheaper one has not a higher quality than other, but it has the probability of gaining more. So, this is the condition that is important and can easily get that comparative advantage is good for that particular company or person. Now, in the term of Economics, it indicates that which country provides the services of supplying goods at lower rate than other country.
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What do you understand by the term Benefits of trade?
The benefits of trade depend directly or sometimes indirectly on Comparative advantage. It means if a company produces at lower price, then trade of benefit can be there to acquire proper solution. A country can gain easily if there is bit different in price and this can lead the economic condition of a country in a proper direction.
What are the different terms related to this?
These terms and other factors are as follows-
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