Comparative advantage is an economic concept that expresses the ability of a country, individual, or firm to produce a particular good or service at a lower opportunity cost than others. It suggests that countries should specialize in producing goods or services in which they have a lower opportunity cost and trade with other countries for goods or services in which they have a higher opportunity cost. By doing so, global production efficiency is maximized, and all countries can benefit from mutual trade based on their comparative advantages.
