oyejiderhoda oyejiderhoda
  • 19-02-2020
  • Business
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what is the principle of comparative cost advantage​

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ariel912 ariel912
  • 20-02-2020

Answer:

The comparative cost principle underlines the fact that two countries will stand to gain through trade so long as the cost ratios for two countries are not equal. On the basis of Table 2.3, country A specialises in the production of X commodity, while country B specialises in the production of Y commodity.

Explanation:

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