What is the relationship between comparative advantage and economic integration?

Economics Comparative Advantage Questions



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What is the relationship between comparative advantage and economic integration?

The relationship between comparative advantage and economic integration is that economic integration allows countries to specialize in producing goods and services in which they have a comparative advantage. This leads to increased efficiency and productivity, as countries can focus on producing what they are best at, while importing goods and services that other countries can produce more efficiently. Economic integration, such as through free trade agreements or regional economic blocs, promotes the exchange of goods and services between countries, allowing them to benefit from each other's comparative advantages and leading to overall economic growth and development.