International trade is based on the law of

International trade is based on the law of comparative cost advantage, which states that countries should specialize in producing and exporting goods that they can produce at a lower opportunity cost than other countries, and import goods that they cannot produce efficiently. In other words, countries should produce the goods that they can produce most efficiently, and trade with other countries to obtain goods that they cannot produce efficiently. By doing so, countries can increase their overall production and consumption, and ultimately improve their standard of living. The law of comparative cost advantage was developed by the economist David Ricardo, and is widely accepted as a key principle of international trade.