Economics Comparative Advantage Questions
The relationship between comparative advantage and specialization is that comparative advantage determines which goods or services a country or individual can produce more efficiently or at a lower opportunity cost compared to others. Specialization, on the other hand, refers to the concentration of production on a specific good or service in which a country or individual has a comparative advantage. In other words, comparative advantage leads to specialization as it allows countries or individuals to focus on producing the goods or services they can produce most efficiently, leading to increased productivity and overall economic growth.