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What is Comparative Advantage?
The term “Comparative advantage” can be used to signify a law which explains the gains that two nations engaged in trades with each other can make due to varied relative expenses for making the same items. This law allows a company, individual or nation to trade with another, not having the same efficiency as, and no complete advantage over, the former – only in case they maintain a variation in their comparative efficiencies. Get only top-quality Comparative Advantage Assignment Help from us.
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Why is it important?
With international trade and commerce starting to get a lot more importance in the last few decades, many different models and theories have come into existence to predict and explain the varied causes and effects in the trade circle. In this respect, the law of Comparative Advantage which was put forward by David Ricardo is very important.
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