Economics Comparative Advantage Questions
The relationship between comparative advantage and economic competitiveness is that comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost compared to other countries, while economic competitiveness refers to a country's ability to compete in the global market and maintain or increase its market share. Comparative advantage can enhance a country's economic competitiveness as it allows them to specialize in producing goods or services in which they have a comparative advantage, leading to increased efficiency and productivity. This can result in lower production costs, higher quality products, and increased competitiveness in the global market.