According to the theory of comparative advantage specialization will result in
Answer Details
According to the theory of comparative advantage, specialization will result in an efficient allocation of resources.
The theory of comparative advantage states that if two countries specialize in producing the goods that they are relatively more efficient in producing, and then trade with each other, both countries can benefit and become better off. By focusing on the production of goods that they are relatively more efficient in producing, each country can produce more output with the same amount of resources than if they were producing everything themselves.
For example, imagine that Country A is more efficient in producing cars and Country B is more efficient in producing computers. If Country A specializes in producing cars and Country B specializes in producing computers, both countries can produce more of both goods and benefit from trade. Country A can export cars to Country B and import computers, while Country B can export computers to Country A and import cars. This allows both countries to consume more of both goods than they would be able to produce themselves.
Overall, specialization according to the theory of comparative advantage leads to an efficient allocation of resources and more efficient production, which benefits both parties involved in trade.