Since the opportunity costs of production in the different economies are different, mutually beneficial trades are possible.
It's a function of the difference in slopes of the production possibility boundaries of two economies, but it is independent of their absolute values. Since the opportunity costs of production in the different economies are different, mutually beneficial trades are possible. FTP, name this economic concept that might lead a country to specialize in an industry where it is more efficient than its neighbors.
It's a function of the difference in slopes of the production possibility boundaries of two economies, but it is independent of their absolute values.
{comparative advantage}