According to the Theory of Comparative Advantage, a Country Should

question 233

True/False

According to the theory of comparative advantage, a country should buy from other countries those goods it produces most efficiently.

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Definitions:

Comparative Advantage

Comparative advantage is the ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors.

Economic Growth

A rise in the output of products and services within an economy over a certain duration, typically assessed through the Gross Domestic Product (GDP).

Free Trade

The absence of tariffs, quotas, or other governmental restrictions on international trade, allowing goods and services to move freely across borders.

Developing Countries

Nations with a lower level of industrialization, lower income per capita, and usually lower standards of living, often working towards more advanced social and economic status.