Economics Comparative Advantage Questions
Technological comparative advantage refers to a situation where a country or firm has a comparative advantage in producing a particular good or service due to its superior technological capabilities. This means that the country or firm can produce the good or service more efficiently and at a lower cost compared to other countries or firms. Technological comparative advantage is often the result of investments in research and development, innovation, and the adoption of advanced technologies. It allows countries or firms to specialize in the production of goods or services that they can produce most efficiently, leading to increased productivity, competitiveness, and economic growth.