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Definition

The law of comparative advantage states that a country tends to export those economic goods in the production of which it has a comparative advantage and to import those economic goods in the production of which it has a comparative disadvantage. If a country has no comparative advantage, then it should tend to produce those products for which it has the least comparative disadvantage.[1] See Wikipedia article on comparative advantage for more information.

References

  1. ^ American Marketing Association. AMA Dictionary.

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