Why is it important that the country with the lower opportunity cost produce the good?

Question

How would you use the concept of comparative advantage to argue for reducing restrictions on trade between countries?

Answer

Whoa! You are mixing economics with politics. They are very intimately associated, but they are not at all the same thing. Politicians know very well that all laws of economics are subject to their approval.

Why is it important that the country with the lower opportunity cost produce the good?

Answers (1)