BU204 Unit 2 Discussion post - The theory of comparative...

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The theory of comparative advantage states that there are gains from trade if countries specialize andoptimize their opportunity costs.A. Comparative advantage is a driving force behind between countries and religions. This isbecause not all countries or regions have all the resources they need to produce all theservices and goods wanted.B. Welfare improvement is caused by specialization means that the opportunity cost ofproduction is lower, which means that globally more goods are produced and prices arelower. (Boundless, 2016 )Engaging in trade is better than trying to be self-sufficientbecause of limited resources and being less expensive.Boundless (2016). Boundless Economics. Retrieved from-textbook/international-trade-31/introduction-to-international-trade-124/benefits-of-specialization-494-12590/Economists use economic models to study real world economic issues. The two basic economic models

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Term
Summer
Professor
NoProfessor
Tags
Economics, Force, production possibility frontier, Boundless Economics

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