The principle of comparative advantage encourages a country to
Answer Details
The principle of comparative advantage encourages a country to engage in trade if it can produce a commodity at a lower cost.
The principle of comparative advantage is an economic theory that suggests that countries should specialize in producing goods or services that they can produce at a lower cost than other countries. By doing so, they can trade their specialized goods with other countries for goods that are produced more efficiently by other countries.
In simpler terms, the principle of comparative advantage encourages countries to focus on what they do best and trade with other countries for the things they don't do as well. For example, if Country A is better at producing computers than Country B, and Country B is better at producing cars than Country A, then it makes sense for Country A to focus on producing computers and trade with Country B for cars, and for Country B to focus on producing cars and trade with Country A for computers.
Therefore, the principle of comparative advantage encourages countries to engage in trade if they can produce a commodity at a lower cost than other countries, rather than trying to be self-sufficient or specializing in the production of all goods.