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The concept of comparative advantage states that even if country A can produce two goods more efficiently than country B, if country B can produce one good more efficiently relative to the other good than country A, then it benefits both countries to specialize and produce the good that they have the comparative advantage in producing. Consequently, by trading, both will be better off than if they attempted to be self-sufficient. For example, suppose China can produce computer programs with 30 hours of work and shoes with 15 hours of work, and the U.S. can produce programs with 15 hours of work and shoes with 10 hours of work...
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Common topics in this essay:
- Benefits of the world Trade Organization
- China Imports
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